Bar Examination 2013

BAR EXAMINATION 2013
LEGAL ETHICS
October 27, 2013
2:00 P.M. - 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains SEVENTEEN (17) pages including these Instructions pages. Check
the number of pages and the page numbers at the upper right hand corner of each page of this
Questionnaire and make sure it has the correct number of pages and their proper numbers.
There are TEN (10) Essay Questions numbered I to X, and TWENTY (20) Multiple Choice
Questions (MCQs)numbered I to XX, to be answered within four (4) hours.
The essay portion contains questions that are worth 80% of the whole examination, while the MCQ
portion contains questions worth 20%.
2. Read each question very carefully and write your answers in your Bar Examination Notebook in
the same order the questions are posed. Write your answers only at the front, not the back, page of
every sheet in your Examination Notebook. Note well the allocated percentage points for each
number, question, or sub-question. In your answers, use the numbering system in the questionnaire.
If the sheets provided in your Examination Notebook are not sufficient for your answers, use the
back pages of every sheet of your Examination Notebook, starting at the back page of the first sheet
and the back of the succeeding sheets thereafter.
3. Answer the Essay questions legibly, clearly, and concisely. Start each number on a separate
page. An answer to a sub-question under the same number may be written continuously on the
same page and the immediately succeeding pages until completed.
Your answer should demonstrate your ability to analyze the facts presented by the question, to
select the material from the immaterial facts, and to discern the points upon which the question
turns. It should show your knowledge and understanding of the pertinent principles and theories of
law involved and their qualifications and limitations. It should demonstrate your ability to apply the
law to the given facts, and to reason logically in a lawyer-like manner to a sound conclusion from the
given premises.
A mere "Yes" or "No" answer without any corresponding explanation or discussion will not be given
any credit. Thus, always briefly but fully explain your answers although the question does not
expressly ask for an explanation. At the same time, remember that a complete explanation does not
require that you volunteer information or discuss legal doctrines that are not necessary or pertinent
to the solution to the problem. You do not need tore-write or repeat the question in your Examination
Notebook.
4. MCQs are to be answered by writing in your Examination Notebook the capital letter (A, B, C, D,
or E) corresponding to your chosen answer. The MCQ answers should begin in the page following
the last page of your essay answers.
There is only one correct answer to every MCQ; choose the BEST answer from among the offered
choices. Note that some MCQs may need careful analysis both of the questions and the choices
offered.
5. Make sure you do not write your name or any extraneous note/s or distinctive marking/s on your
Examination Notebook that can serve as an identifying mark/s (such as names that are not in the
given questions, prayers, or private notes to the Examiner).
Writing, leaving or making any distinguishing or identifying mark in the Examination Notebook is
considered cheating and can disqualify you for the Bar examinations.
You can use the questionnaire for notes you may wish/need to write during the examination.
HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE
J. ARTURO D. BRION
Chairman
2013 Bar Examinations
ESSAY QUESTIONS
I.
Atty. Bravo represents Carlos Negar (an insurance agent for Dormir Insurance Co.) in a suit filed by
insurance claimant Andy Limot who also sued Dormir Insurance. The insurance policy requires the
insured/claimant to give a written notice to the insurance company or its agent within 60 days from
the occurrence of the loss.
Limot testified during the trial that he had mailed the notice of the loss to the insurance agent, but
admitted that he lost the registry receipt so that he did not have any documentary evidence of the
fact of mailing and of the timeliness of the mailed notice. Dormir Insurance denied liability,
contending that timely notice had not been given either to the company or its agent. Atty. Bravos
client, agent Negar, testified and confirmed that he never received any notice.
A few days after Negar testified, he admitted to Atty. Bravo that he had lied when he denied receipt
of Limots notice; he did receive the notice by mail but immediately shredded it to defeat Limots
claim.
If you were Atty. Bravo, what would you do in light of your clients (Carlos Negars) disclosure that he
perjured himself when he testified? (8%)
II.
Atty. Serafin Roto is the Corporate Secretary of a construction corporation that has secured a multimillion infrastructure project from the government. In the course of his duties as corporate secretary,
he learned from the company president that the corporation had resorted to bribery to secure the
project and had falsified records to cut implementing costs after the award of the project.
The government filed a civil action to annul the infrastructure contract and has subpoenaed Atty.
Roto to testify against the company president and the corporation regarding the bribery. Atty. Roto
moved to quash the subpoena, asserting that lawyer-client privilege prevents him from testifying
against the president and the corporation.

Resolve the motion to quash. (8%)
III.
Miguel Jactar, a fourth year law student, drove his vehicle recklessly and hit the rear bumper of
Simplicio Medrosos vehicle. Instead of stopping, Jactar accelerated and sped away. Medroso
pursued Jactar and caught up with him at an intersection.
In their confrontation, Jactar dared Medroso to sue, bragged about his connections with the courts,
and even uttered veiled threats against Medroso. During the police investigation that followed,
Medroso learned that Jactar was reviewing for the Bar examinations.
Under these facts, list and justify the potential objections that can be made against Jactars
admission to the practice of law. (8%)
IV.
Atty. Doblar represents Eva in a contract suit against Olga. He is also defending Marla in a
substantially identical contract suit filed by Emma. In behalf of Eva, Atty. Doblar claims that the
statute of limitations runs from the time of the breach of the contract. In the action against Marla,
Atty. Doblar now argues the reverse position i.e., that the statute of limitation does not run until
one year after discovery of the breach.
Both cases are assigned to Judge Elrey. Although not the sole issue in the two cases, the statute of
limitations issue is critical in both.
Is there an ethical/professional responsibility problem in this situation? If a problem exists, what are
its implications or potential consequences? (8%)
V.
Atty. Repatriar, a law school classmate, approached you on your 25th Class Reunion, with questions
on how he can resume the practice of law in the Philippines. He left the country in 1977 after two (2)
years of initial law practice, and migrated to the United States where he was admitted to the practice
of law in the State of New York. He asks that you give him a formal legal opinion on his query.
Outline briefly the steps and the supporting legal reasons you would state in your legal opinion on
what Atty. Repatriar should do to resume his Philippine practice. (8%)
VI.
An audit team from the Office of the Court Administrator found that Judge Contaminada committed
serious infractions through the indiscriminate grant of petitions for annulment of marriage and legal
separation. In one year, the judge granted 300 of such petitions when the average number of
petitions of similar nature granted by an individual judge in his region was only 24 petitions per
annum.
The audit revealed many different defects in the granted petitions: many petitions had not been
verified; the required copies of some petitions were not furnished to the Office of the Solicitor
General and the Office of the Provincial Prosecutor; docket fees had not been fully paid; the parties
were not actual residents within the territorial jurisdiction of the court; and, in some cases, there was
no record of the cross-examinations conducted by the public prosecutor or any documentary
evidence marked and formally offered. All these, viewed in their totality, supported the improvident
and indiscriminate grant that the OCA found.
If you were the counsel for Andy Malasuerte and other litigants whose marriages had been
improperly and finally annulled, discuss your options in administratively proceeding against Judge
Contaminada, and state where and how you would exercise these options. (8%)
VII.
In an action to prevent the condominium developer from building beyond ten (10) floors, Judge
Cerdo rendered judgment in favor of the defendant developer. The judgment became final after the
plaintiffs failed to appeal on time. Judge Cerdo and Atty. Cocodrilo, counsel for the developer,
thereafter separately purchased a condominium unit each from the developer.
Did Judge Cerdo and Atty. Cocodrilo commit any act of impropriety or violate any law for which they
should be held liable or sanctioned? (8%)
VIII.
The criminal case arising from the P10-Billion Peso pork barrel scandal was raffled to
Sandiganbayan Justice Marciano Cobarde. Afraid that he would antagonize the parties, his political
patrons and, ultimately, his judicial career, he decided to inhibit from participating in the case, giving
"personal reasons" as his justification.
If you were to question the inhibition of SB Justice Cobarde, on what legal basis, and where and
how will you do this? (8%).
IX.
Atty. Hermano requested his fraternity brother, Judge Patron, to introduce him to Judge Apestado,
before whom he has a case that had been pending for sometime.
Judge Patron, a close friend of Judge Apestado, acceded to the request, telling the latter that Atty.
Hermano is his fraternity "brod" and that Atty. Hermano simply wanted to ask for advice on how to
expedite the resolution of his case. They met, as arranged, in the fine dining restaurant of a five-star
hotel. Atty. Hermano hosted the dinner.
Did Atty. Hermano, Judge Patron and Judge Apestado commit any ethical/administrative violation for
which they can be held liable? (8%)
X.
As a new lawyer, Attorney Novato started with a practice limited to smal lclaims cases, legal
counseling, and notarization of documents. He put up a solo practice law office and was assisted by
his wife who served as his secretary/helper. He used a makeshift hut in a vacant lot near the local
courts and a local transport regulatory agency. With this strategic location, he enjoyed heavy
patronage assisting walk-in clients in the preparation and filing of pleadings and in the preparation
and notarization of contracts and documents. He had the foresight of investing in a good heavy duty
copier machine that reproduces quality documents, and charges a reasonable fee for this service.
He draws electric power from an extension wire connected to an adjoining small restaurant. He put
up a shingle that reads: "Atty. Novato, Specialist in Small Claims, Fastest in Notarization; the Best
and Cheapest in Copier Services."
Is Attorney Novatos manner of carrying out his professional practice i.e., mixing business with the
practice of law, announcing his activities via a shingle and locating his office as above-described in
keeping with appropriate ethical and professional practice? (8%)
MULTIPLE CHOICE QUESTIONS
I. Under the 2004 Rules of Notarial Practice, what may used to satisfy the requirement of
"competent evidence of identity"? (1%)
(A) Passport, Senior Citizen card, HMO card.
(B) Police clearance, credit card, Professional Regulatory Commission ID.
(C) Voters ID, NBI clearance, Drivers license.
(D) Ombudsmans clearance, private office ID, PhilHealth card.
(E) All of the above.
II. The following are duties of a lawyer but only one of these is expressly stated in the Lawyers
Oath. Choose the express duty that the Oath contains. (1%)
(A) To maintain a respectful attitude towards the courts.
(B) To uphold the honor and dignity of the legal profession.
(C) To act with courtesy, candor and fairness toward other lawyers.
(D) To do no falsehood, nor consent to the doing of any in court.
(E) To respect the courts and uphold the dignity of the profession.
III. Atty. Avaro has consistently failed to pay his annual IBP dues for several years. Demand letters
have been sent to him and he has acknowledged receipt of these letters. However, all the IBPs
efforts proved futile. As a result, the IBP sent Atty. Avaro a notice that his name would be stricken off
the Roll of Attorneys.
Was the IBPs action correct? (1%)
(A) No, because default in the payment of annual dues only warrants suspension of
Integrated Bar members.

(B) Yes, because non-payment of annual dues is an indicator of the lawyers moral fitness;
refusal to pay is refusal to honor his obligation to the IBP.
(C) No, because failure to pay affects a members capability to practise, but not his
membership in the Bar.
(D) Yes, because payment of membership dues and other lawful assessments are
conditions sine qua non to the privilege of practising law and to the retention of his name in
the Roll of Attorneys.
(E) None of the above choices is correct.
IV. Ms. Seller and Mr. Buyer presented to a commissioned notary public a deed of sale for
notarization. The notary public explained to them the transaction the deed embodies and asked
them if they were freely entering the transaction. After the document was signed by all the parties,
the notary public collected the notarial fee but did not issue any BIR-registered receipt.
The notarization of the deed is __________. (1%)
(A) neither unlawful nor improper because he explained the basis for the computation of the
notarial fee
(B) unlawful because he did not issue a BIR-registered receipt and did not post in his office
the complete schedule of chargeable notarial fees
(C) proper because he is not required to issue receipts for notarial fees
(D) improper because he did not ask Ms. Seller and Mr. Buyer if they needed a receipt
(E) proper because any irregularity in the payment of the notarial fees does not affect the
validity of the notarization made
V. In order to comply with the MCLE requirements, Atty. Ausente enrolled in a seminar given by an
MCLE provider. Whenever he has court or other professional commitments, he would send his
messenger or a member of his legal staff to register his attendance at the MCLE sessions so he
could be credited with the required qualifying attendance. He would also ask them to secure the
printed handouts and the lecturers CDs, all of which he studied in his free time.
Atty. Ausente should be __________. (1%)
(A) required to make up for his absence by attending lecture sessions in other MCLE
providers
(B) sanctioned because he circumvented or evaded full compliance with the MCLE
requirements
(C) excused because he attended to profession-related tasks, and fully studied the courses
through the materials and CDs he secured

(D) penalized by forfeiting all his earned MCLE units
(E) excused because attendance by proxy is a widespread and tolerated MCLE practice
VI. Plaintiff Jun Ahorro filed a complaint for collection of sum of money before the Regional Trial
Court of Manila. Because of the large amount of his claim, he had to pay a sizeable docket fee. He
insisted on paying the docket fee and other fees in installments because staggered payment is
allowed under Rule 141, as amended. The Office of the Clerk of Court (OCC) refused to accept the
complaint unless he paid the full amount of the docket and other required fees.
Plaintiff Jun Ahorros position __________. (1%)
(A) is allowed because of the large amount of the docket fee
(B) is justified because it is discretionary on the part of the OCC to accept staggered
payment
(C) is incorrect because the amendment on staggered payment has been suspended
(D) is not allowed because the full payment of docket fee is jurisdictional
(E) cannot be allowed because of its prejudicial impact on the judiciarys financial operations
VII. Atty. Anunciante is engaged in the practice of law and has a regular, live, weekly TV program
where he gives advice to and answers questions from the audience and program viewers
concerning U.S. immigration problems. Occasionally, advertisements inviting viewers to watch his
TV program are shown outside his regular program schedule. Because of the popularity of his TV
program, the number of his law practice clients increased tremendously.
The TV program of Atty. Anunciante is __________. (1%)
(A) permissible because it is public service in nature
(B) objectionable because the work involves indirect advertising or solicitation of business
(C) improper because it gives him an unfair advantage over other lawyers
(D) ethically allowable because it does not violate the traditional standards of the legal
profession
(E) None of the above.
VIII. Vito is a notorious gangster in the province who has been accused of raping and mercilessly
killing a 16-year old girl. Sentiments run very strongly against him and the local Bar Association met
and decided that no lawyer in the locality would represent him. Vito could not afford the services of
an out-of-town counsel.
Choose the most appropriate legal and ethical characterization of the decision of the local Bar
Association. (1%)
(A) It is within its right to make, since lawyers may freely decide who to represent and who
not to represent.
(B) It is unethical; it constitutes a collective denial of Vitos right to the assistance of counsel.
(C) It constitutes an anticipated act of contempt towards the court that may order any of the
members of the association to represent the accused.
(D) It must be concurred in by each member of the Bar Association to have any binding
force.
(E) It is unethical because the Bar Association already prejudged Vito.
IX. Graft Investigator Atty. Retirada served the Office of the Deputy Ombudsman for eight years
before retiring from the service. While still a Graft Investigator, she investigated a government
contract for office supplies where Mr. Sakim was the supplier. The transaction was supposedly
overpriced. Atty. Retirada recommended that no charges be filed against the officials involved and
the recommendation benefited Mr. Sakim as the supplier involved in the transaction.
After her retirement from the service, Atty. Retiradas services as counsel were engaged by Mr.
Sakim as counsel to represent the Sakim family in a claim against the State arising from a family
property that had been expropriated. Atty. Retirada now consults you about the ethical permissibility
of accepting the engagement.
What advice would you give Atty. Retirada? (1%)
(A) Having been in government service, she cannot now represent a party with a claim
against the State.
(B) Having once handled a case involving her prospective client, a conflict of interest would
exist if she were to accept the engagement.
(C) Representing the Sakim family would involve the unethical use of information she
obtained while in government service.
(D) There is no ethical objection to her acceptance of the engagement because the case is
neither criminal nor administrative in character.
(E) Acceptance of the engagement should be on condition that Atty. Retirada would withdraw
if a conflict of interest situation arises.
X. Your client is the plaintiff in a civil case for damages arising from a car accident where he
sustained serious physical injuries and damages amounting to P1Million. The counsel for the
defendant asks you to give him a proposed amount for purposes of settlement and you are aware
that whatever amount you tell him would not readily be accepted and would probably be cut into
half.
What is your best legal and ethical course of action? (1%)
(A) Inflate your proposal to make allowances for a compromise.
(B) Tell the defendants counsel the correct amount of damages.
(C) Offer him a reasonably low amount so that the case can immediately be settled.
(D) Ask the defendants counsel to first submit his negotiating figure.
(E) Play hard-to-get and initially refuse all the defendants initiatives to settle.
XI. Candido engaged the services of Atty. Lebron in a criminal case. In the course of their
consultations, Candido admitted to Atty. Lebron that he committed the crime and in fact actively
planned its commission. He stressed, however, that under no circumstance would he admit or
confess to the murder charge he is facing and, in fact, would enter a plea of "not guilty" on
arraignment.
If Candido insists on his planned plea, Atty. Lebron should __________. (1%)
(A) discontinue his representation; to continue would be unethical since he would then be
aiding the accused in foisting a deliberate falsehood on the court
(B) allow Candido to choose his course of action; Atty. Lebrons duty is to protect all his legal
and statutory rights
(C) convince Candido to plead guilty and withdraw from the case if Candido refuses to heed
his advice
(D) file a manifestation, if Candido pleads "not guilty," declaring to the court what he knows
of the truth.
(E) play matters by ear and wait for developments as Candido may still plead guilty.
XII. A Regional Trial Court issues a temporary restraining order ( TRO ) halting the demolition order
issued by the City Mayor who has long loathed the cluster of shanties put up by informal settlers
along the road leading to the citys commercial district. The TRO, however, carried conditions that
must be in place before the threatened demolition can be fully halted.
The city legal officer advised the City Engineers Office and the local PNP chief that the TROs
conditions are not in place so that the demolition could proceed. The city filed a manifestation
reflecting the city legal officers position, while the informal settlers counsel sought its own
clarification and reconsideration from the court, which responded by decreeing that the conditions
have been fulfilled. Despite this ruling, the city legal officer insisted that the conditions have not been
fulfilled and thus gave the PNP clearance to aid the City Engineers Office in proceeding with the
demolition.
From the perspective of professional ethics, how would you characterize the city legal officers
actions? (1%)
(A) It is unethical since he counseled civil servants to disregard a court order.
(B) It is ethical, since he acted in accordance with his honest conviction after considering
that the courts conditions have not been met.
(C) It constitutes indirect contempt, but the lawyer cannot be disciplined because he acted
out of his firm and honest conviction.
(D) It is neither contemptuous nor unethical since he was performing his duties as city legal
officer.
(E) It is unethical since the City Legal Officer was simply blindly following the Mayors
wishes.
XIII. The mediator assigned to a civil case happens to be your law school classmate and he makes
a doctrinal statement about the rights of the parties. You knew that the statement, although favorable
to your clients case, is incorrect.
The ethical move to make under the circumstances is to __________. (1%)
(A) correct the mediator and state the right doctrine
(B) just keep quiet because the other counsel might learn about your relationship with the
mediator
(C) reveal your relationship with the mediator and ask the opposing counsel if he has any
objections
(D) request the Mediation Supervisor to immediately change the mediator
(E) simply withdraw from the case because of the unfair advantage that you enjoy
XIV. Wanda finally became pregnant in the 10th year of her marriage to Horacio. As her pregnancy
progressed, she started having difficulty breathing and was easily fatigued. The doctors diagnosed
that she has a heart congestion problem dueto a valve defect, and that her chances of carrying a
baby to full term are slim. Wanda is scared and contemplates the possibility of abortion. She thus
sought legal advice from Diana, a lawyer-friend and fellow church member, who has been informally
advising her on legal matters.
What is Dianas best ethical response? (1%)
(A) Beg off from giving any advice because it is a situation that is not purely legal.
(B) Advise Wanda on the purely legal side of her problem and assure her that abortion is
allowed by law if the pregnancy endangers the life of the mother.
(C) Advise that it is a religious problem before it is a medical or legal one, and Wanda should
consult and follow the advice of her religious confessor.
(D) Advise Wanda that abortion, above everything else, is a moral problem and she should
only have an abortion if it is an act she can live with.
(E) Refrain from giving any kind of advice as abortion is a serious matter that cannot be
resolved through informal consultations with friends and fellow church members.
XV. Based on the same facts as Question XIV, assume that Diana, aside from being a family friend
of the couple, has been formally and informally acting as their lawyer in all their personal and family
affairs. She has represented them in court in a case involving a car accident and in the purchase of
their family home, for which they formally paid the attorneys fees that Diana billed.
In this instance, Wanda asked about her legal rights but did not formally ask for a written opinion
from Diana. Horacio never had any input on the query as he was then away on an out-of-town trip
for his office.
Diana advised Wanda that she is fully protected in law and her best course of action is to have an
abortion while her pregnancy is not yet far advanced.
Did Diana violate the prohibition against representing conflicting interests when she provided legal
advice to Wanda without Horacios knowledge? (1%)
(A) Yes. The decision of whether to have an abortion should be decided by both spouses;
thus, Diana should not have provided legal advice in the absence of Horacio whose
concerns and positions are unknown to her.
(B) No. Diana did not give any formal advice that would constitute legal practice calling for
the strict observance of the conflict of interest rules.
(C) No. The decision on whether or not to have an abortion lies solely with Wanda; it is her
body and health that is in issue.
(D) No. Horacio and Wanda are married, any advice given to Wanda is deemed to have
been given to Horacio as well.
(E) No. Giving advice to Wanda is not necessarily acting against Horacios interest; Diana
was giving advice based on the couples best interest.
XVI. ABLE Law Office has a retainer agreement with Santino, a businessman with shady
connections, who has recently been charged with laundering money for an illegal drugs syndicate
using Cable Co., Santinos holding company. The lawyers of ABLE Law Office assigned to handle
Santinos account have been impleaded as co-defendants for incorporating and actively handling
the affairs of Cable Co.
In its bid to strengthen its case against the defendants, the prosecution approached you (as the
least guilty defendant who would qualify for a discharge as a state witness) and offers to make you a
state witness.
Can you accept, within the bounds of professional ethics, the prosecutions offer? (1%)
(A) No, as Santinos lawyer you are duty-bound to protect his interests, ably represent him in
court, and not turn against him.
(B) Yes, as an officer of the court, you have the duty to disclose to the court information
crucial to the case.
(C) No, the information you acquired involving the criminal case against Santino is covered
by the privileged communications rule.
(D) Yes, a lawyer may testify against his client provided he first severs the lawyer-client
relationship.
(E) Yes, the law of self-preservation is akin to the law of self-defense and stands higher than
any obligation you may have with your client.
XVII. Under the same essential facts as the preceding Question XVI, assume that you have
resigned from ABLE Law Office and that you were never impleaded as a co-defendant, but during
your stay with the firm, you assisted in handling the Cobra Co. account, which is largely owned by
Cable Co.
The prosecutor handling the case against Santino and the law firm asks you, as a former law firm
member, if you can help strengthen the prosecutions case and hints that you, too, may be
impleaded as a co-defendant if you do not cooperate.
What is your best legal and ethical course of action? (1%)
(A) Offer to testify on what you know and provide evidence against the defendants in
exchange for a guarantee of immunity from prosecution in the case.
(B) Offer to provide evidence against Santino, but clarify that you cannot testify against
Santino because of the privileged communications rule
(C) Decline to testify against the defendants and to provide evidence in the case as the
attorney-client privilege lasts even beyond the termination of the relationship.
(D) Decline to testify against the defendants as whatever information you acquired from
Santino and Cable Co. in the course of the lawyer-client relationship is privileged.
(E) Alert the law firm to the prosecutions offer so that they can prepare for the evidence
within your knowledge that the prosecution may use.
XVIII. You are a lawyer working in the Public Assistance Office. Yolly, a key witness in the case
(reckless imprudence resulting in homicide) you are handling, is indigent and illiterate. While Yolly is
willing to testify in court, you worry that the judge might not be able to appreciate the impact of her
testimony, as she has a difficult time answering English questions. You also worry that this might
affect her credibility. Further, Yolly has indicated that she might not have the money to pay the fare
to attend the trial. You are presenting her as a witness for the defense at the hearing next week.
Which of the following is NOT a permissible act for you to do? (1%)
(A) Provide Yolly with money for fare to ensure her attendance in court.
(B) Interview Yolly before trial, so that she will be more at ease when she testifies before the
court.
(C) Prepare a judicial affidavit of Yollys testimony, which she will then verify before the court.
(D) Provide her with sample questions that you might ask in the hearing tomorrow.
(E) All the above are permissible.
XIX. You are a lawyer working at the Office of the Special Prosecutor and you are part of the team
handling the case against former Senator Avido who is charged with plunder. Based on your
assessment of the evidence that the complainant Linda submitted, you know that the case against
former Senator Avido is weak, although you instinctively feel that he is guilty. You inform your friend
Atty. Curioso (who works with the office of Senator Elmismo, a known political rival of Senator Avido)
regarding your instinctive feeling about Senator Avido. Atty. Curioso springs a surprise by giving you
a recording of the wiretapped conversation between Senator Avido and Napo, a private party coaccused, about the transaction complained of and how they would split the proceeds.
What will you do under these circumstances? (1%)
(A) Disregard the wiretapped conversation as it is inadmissible and will not serve any useful
purpose in the trial of the case.
(B) Present the wiretapped conversation in court; although inadmissible, its introduction and
the disclosure of its existence is a right that the public is entitled to.
(C) Leak the wiretapped conversation to the media, to let the public know what really
happened.
(D) Submit the wiretapped conversation to the Senate which is in the best position to
determine what to do with it.
(E) Let Napo privately know, through 3 rd parties, that you are aware of the existence of the
taped conversation, with the hint that he can still hope for a lighter penalty if he would
cooperate.
XX. Armin, holding a transfer certificate of title to a lot in downtown Calamba in the name of Bobby,
shows you the title and claims that Bobby sold him the lot. He then asks you to draft a deed of sale
covering the transaction. In reply to your query on where Bobby is, Armin explains that Bobby is
currently out of the country but he (Armin) has his general power of attorney which he also shows to
you. The power of attorney empowers Armin to do everything that Bobby can do with the Calamba
lot, but you note that it does not specifically authorize Armin to sell the property. Armin also assures
you that he wants the deed of sale drafted so he can send it to Bobby for his signature even while
overseas.
How will you act under the given circumstances? (1%)
(A) Agree to draft the deed of sale, subject to your usual 10%commission.
(B) Refuse to draft the deed of sale, as Armin has not presented a special power of attorney
that would support the deed that he is asking you to prepare.
(C) Refuse to draft the deed of sale, as Bobby is not present to sign the deed of sale and
verify that he is indeed selling his lot to Armin.
(D) Agree to draft the deed of sale, since it is only a draft that Bobby still has to consider and
sign.
(E) Refuse to have anything to do with Armins request because it is a potentially
problematic situation given the price of lots in downtown Calamba.

REMEDIAL LAW
October 27, 2013
8:00 A.M.- 12:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains FOURTEEN (14) pages including these Instructions pages. Check
the number of pages and the page numbers at the upper right hand corner of each page of this
There are TEN (10) Essay Questions numbered I to X (with subquestions), and TWENTY (20)
Multiple Choice Questions (MCQs) numbered I to XX, to be answered within four (4) hours.

given premises.
to the solution to the problem. You do not need to re-write or repeat the question in your
Examination Notebook.
offered.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
Alfie Bravo filed with the Regional Trial Court of Caloocan, a complaint for a sum of money against
Charlie Delta. The claim is for Php1.5Million. The complaint alleges that Charlie borrowed the
amount from Alfie and duly executed a promissory note as evidence of the loan. Charlies office
secretary, Esther, received the summons at Charlies office.
Charlie failed to file an answer within the required period, and Alfie moved to declare Charlie in
default and to be allowed to present evidence ex parte. Ten days later, Charlie filed his verified
answer, raising the defense of full payment with interest.

I(A) Was there proper and valid service of summons on Charlie? (3%)
I(B) If declared in default, what can Charlie do to obtain relief? (4%)
II.
Yvonne, a young and lonely OFW, had an intimate relationship abroad with a friend, Percy. Although
Yvonne comes home to Manila every six months, her foreign posting still left her husband Dario
lonely so that he also engaged in his own extramarital activities. In one particularly exhilarating
session with his girlfriend, Dario died. Within 180 days from Darios death, Yvonne gives birth in
Manila to a baby boy. Irate relatives of Dario contemplate criminally charging Yvonne for adultery
and they hire your law firm to handle the case.
II(A) Is the contemplated criminal action a viable option to bring? (3%)
II(B) Is a civil action to impugn the paternity of the baby boy feasible, and if so, in what
proceeding may such issue be determined? (5%)
III.
While in his Nissan Patrol and hurrying home to Quezon City from his work in Makati, Gary figured
in a vehicular mishap along that portion of EDSA within the City of Mandaluyong. He was bumped
from behind by a Ford Expedition SUV driven by Horace who was observed using his cellular phone
at the time of the collision. Both vehicles - more than 5 years old no longer carried insurance other
than the compulsory third party liability insurance. Gary suffered physical injuries while his Nissan
Patrol sustained damage in excess of Php500,000.
III(A) As counsel for Gary, describe the process you need to undertake starting from the
point of the incident if Gary would proceed criminally against Horace, and identify the court
with jurisdiction over the case. (3%)
III(B) If Gary chooses to file an independent civil action for damages, explain briefly this type
of action: its legal basis; the different approaches in pursuing this type of action; the
evidence you would need; and types of defenses you could expect. (5%)
IV.
At the Public Attorney's Office station in Taguig where you are assigned, your work requires you to
act as public defender at the local Regional Trial Court and to handle cases involving indigents.
IV(A) In one criminal action for qualified theft where you are the defense attorney, you
learned that the woman accused has been in detention for six months, yet she has not been
to a courtroom nor seen a judge.
What remedy would you undertake to address the situation and what forum would you use
to invoke this relief? (3%)
IV(B) In another case, also for qualified theft, the detained young domestic helper has been
brought to court five times in the last six months, but the prosecution has yet to commence
the presentation of its evidence. You find that the reason for this is the continued absence of
the employer-complainant who is working overseas.
What remedy is appropriate and before which forum would you invoke this relief? (3%)
IV(C) Still in another case, this time for illegal possession of dangerous drugs, the
prosecution has rested but you saw from the records that the illegal substance allegedly
involved has not been identified by any of the prosecution witnesses nor has it been the
subject of any stipulation.
Should you now proceed posthaste to the presentation of defense evidence or consider
some other remedy? Explain the remedial steps you propose to undertake. (3%)
IV(D) In one other case, an indigent mother seeks assistance for her 14-year old son who
has been arrested and detained for malicious mischief.
Would an application for bail be the appropriate remedy or is there another remedy
available? Justify your chosen remedy and outline the appropriate steps to take. (3%)
V.
The spouses Juan reside in Quezon City. With their lottery winnings, they purchased a parcel of land
in Tagaytay City for P100,000.00. In a recent trip to their Tagaytay property, they were surprised to
see hastily assembled shelters of light materials occupied by several families of informal settlers
who were not there when they last visited the property three (3) months ago.
To rid the spouses Tagaytay property of these informal settlers, briefly discuss the legal remedy you,
as their counsel, would use; the steps you would take; the court where you would file your remedy if
the need arises; and the reason/s for your actions. (7%)
VI.
While leisurely walking along the street near her house in Marikina, Patty unknowingly stepped on a
garden tool left behind by CCC, a construction company based in Makati. She lost her balance as a
consequence and fell into an open manhole. Fortunately, Patty suffered no major injuries except for
contusions, bruises and scratches that did not require any hospitalization. However, she lost selfesteem, suffered embarrassment and ridicule, and had bouts of anxiety and bad dreams about the
accident. She wants vindication for her uncalled for experience and hires you to act as counsel for
her and to do whatever is necessary to recover at least Php100,000 for what she suffered.
What action or actions may Patty pursue, against whom, where (court and venue), and under what
legal basis? (7%)
VII.
You are the defense counsel of Angela Bituin who has been charged under RA 3019 ( Anti-Graft and
Corrupt Practices Act ) before the Sandiganbayan. While Angela has posted bail, she has yet to be
arraigned. Angela revealed to you that she has not been investigated for any offense and that it was
only when police officers showed up at her residence with a warrant of arrest that she learned of the
pending case against her. She wonders why she has been charged before the Sandiganbayan
when she is not in government service.
VII(A) What "before-trial" remedy would you invoke in Angelas behalf to address the fact
that she had not been investigated at all, and how would you avail of this remedy? (4%)
VII(B) What "during-trial" remedy can you use to allow an early evaluation of the prosecution
evidence without the need of presenting defense evidence; when and how can you avail of
this remedy? (4%)
VIII.
On his way to the PNP Academy in Silang, Cavite on board a public transport bus as a passenger,
Police Inspector Masigasig of the Valenzuela Police witnessed an on-going armed robbery while the
bus was traversing Makati. His alertness and training enabled him to foil the robbery and to subdue
the malefactor. He disarmed the felon and while frisking him, discovered another handgun tucked in
his waist. He seized both handguns and the malefactor was later charged with the separate crimes
of robbery and illegal possession of firearm.
VIII(A) Where should Police Inspector Masigasig bring the felon for criminal processing? To
Silang, Cavite where he is bound; to Makati where the bus actually was when the felonies
took place; or back to Valenzuela where he is stationed? Which court has jurisdiction over
the criminal cases? (3%)
VIII(B) May the charges of robbery and illegal possession of firearm be filed directly by the
investigating prosecutor with the appropriate court without a preliminary investigation? (4%)
IX.
For over a year, Nenita had been estranged from her husband Walter because of the latters
suspicion that she was having an affair with Vladimir, a barangay kagawad who lived in nearby
Mandaluyong. Nenita lived in the meantime with her sister in Makati. One day, the house of Nenitas
sister inexplicably burned almost to the ground. Nenita and her sister were caught inside the house
but Nenita survived as she fled in time, while her sister tried to save belongings and was caught
inside when the house collapsed.
As she was running away from the burning house, Nenita was surprised to see her husband also
running away from the scene. Dr. Carlos, Walters psychiatrist who lived near the burned house and
whom Walter medically consulted after the fire, also saw Walter in the vicinity some minutes before
the fire. Coincidentally, Fr. Platino, the parish priest who regularly hears Walters confession and
who heard it after the fire, also encountered him not too far away from the burned house.
Walter was charged with arson and at his trial, the prosecution moved to introduce the testimonies
of Nenita, the doctor and the priest-confessor, who all saw Walter at the vicinity of the fire at about
the time of the fire.
IX(A) May the testimony of Nenita be allowed over the objection of Walter? (3%)
IX(B) May the testimony of Dr. Carlos, Walters psychiatrist, be allowed over Walters
objection? (3%)
IX(C) May the testimony of Fr. Platino, the priest-confessor, be allowed over Walters
objection? (3%)
X.
As a new lawyer, Attorney Novato limited his practice to small claims cases, legal counseling and
the notarization of documents. He put up a solo practice law office and was assisted by his wife who
served as his secretary/helper. He used a makeshift hut in a vacant lot near the local courts and a
local transport regulatory agency. With this practice and location, he did not have big-time clients but
enjoyed heavy patronage assisting walk-in clients.
X(A) What role can Attorney Novato play in small claims cases when lawyers are not
allowed to appear as counsel in these cases? (3%)
X(B) What legal remedy, if any, may Attorney Novato pursue for a client who loses in a small
claims case and before which tribunal or court may this be pursued? (4%)
I. In a complaint filed by the plaintiff, what is the effect of the defendants failure to file an answer
within the reglementary period? (1%)
(A) The court is allowed to render judgment motu proprio in favor of the plaintiff.
(B) The court motu proprio may declare the defendant in default, but only after due notice to
the defendant.
(C) The court may declare the defendant in default but only upon motion of the plaintiff and
with notice to the defendant.
(D) The court may declare the defendant in default but only upon motion of the plaintiff, with
notice to the defendant, and upon presentation of proof of the defendants failure to answer.
(E) The above choices are all inaccurate.
II. Which of the following is admissible? (1%)
(A) The affidavit of an affiant stating that he witnessed the execution of a deed of sale but
the affiant was not presented as a witness in the trial.
(B) The extra judicial admission made by a conspirator against his co-conspirator after the
conspiracy has ended.
(C) The testimony of a partys witness regarding email messagesthe witness received from
the opposing party.
(D) The testimony of a police officer that he had been told by his informants that there were
sachets of shabu in the pocket of the defendant.

III. Leave of court is required to amend a complaint or information before arraignment if the
amendment __________. (1%)
(A) upgrades the nature of the offense from a lower to a higher offense and excludes any of
the accused
(B) upgrades the nature of the offense from a lower to a higher offense and adds another
accused
(C) downgrades the nature of the offense from a higher to a lower offense or excludes any
accused
(D) downgrades the nature of the offense from a higher to a lower offense and adds another
accused
(E) All the above choices are inaccurate.
IV. A Small Claims Court __________. (1%)
(A) has jurisdiction over ejectment actions
(B) has limited jurisdiction over ejectment actions
(C) does not have any jurisdiction over ejectment actions
(D) does not have original, but has concurrent, jurisdiction over ejectment actions
(E) has only residual jurisdiction over ejectment actions
V. Character evidence is admissible __________. (1%)
(A) in criminal cases the accused may prove his good moral character if pertinent to the
moral trait involved in the offense charged
(B) in criminal cases the prosecution may prove the bad moral character of the accused to
prove his criminal predisposition
(C) in criminal cases under certain situations, but not to prove the bad moral character of the
offended party
(D) when it is evidence of the good character of a witness even prior to his impeachment as
witness
(E) In none of the given situations above.
VI. When the court renders judgment in a judicial foreclosure proceeding, when is the mortgaged
property sold at public auction to satisfy the judgment? (1%)
(A) After the decision has become final and executory.
(B) At any time after the failure of the defendant to pay the judgment amount.
(C) After the failure of the defendant to pay the judgment amount within the period fixed in
the decision, which shall not be less than ninety (90) nor more than one hundred twenty
(120) days from entry of judgment.
(D) The mortgaged property is never sold at public auction.
(E) The mortgaged property may be sold but not in any of the situations outlined above.
VII. The signature of counsel in the pleading constitutes a certification that __________. (1%)
(A) both client and counsel have read the pleading, that to the best of their knowledge,
information and belief there are good grounds to support it, and that it is not interposed for
delay
(B) the client has read the pleading, that to the best of the clients knowledge, information
and belief, there are good grounds to support it, and that it is not interposed for delay
(C) the counsel has read the pleading, that to the best of the clients knowledge, information
and belief, there are good grounds to support it, and that it is not interposed for delay
(D) the counsel has read the pleading, that based on his personal information, there are
good grounds to support it, and that it is not interposed for delay
(E) The above choices are not totally accurate.
VIII. Which among the following is a requisite before an accused may be discharged to become a
state witness? (1%)
(A) The testimony of the accused sought to be discharged can be substantially corroborated
on all points.
(B) The accused does not appear to be guilty.
(C) There is absolute necessity for the testimony of the accused whose discharge is
requested.
(D) The accused has not at any time been convicted of any offense.
IX. Which of the following distinguishes a motion to quash from a demurrer to evidence? (1%)
(A) A motion to quash a complaint or information is led before the prosecution rests its
case.
(B) A motion to quash may be led with or without leave of court, at the discretion of the
accused.
(C) When a motion to quash is granted, a dismissal of the case will not necessarily follow.
(D) The grounds for a motion to quash are also grounds for a demurrer to evidence.
(E) The above choices are all wrong.
X. Which among the following is not subject to mediation for judicial dispute resolution? (1%)
(A) The civil aspect of B.P. Blg. 22 cases.
(B) The civil aspect of theft penalized under Article 308 of the Revised Penal Code.
(C) The civil aspect of robbery.
(D) Cases cognizable by the Lupong Tagapamayapa under the Katarungang Pambarangay
Law.
XI. What is the effect of the pendency of a special civil action under Rule65 of the Rules of Court on
the principal case before the lower court? (1%)
(A) It always interrupts the course of the principal case.
(B) It interrupts the course of the principal case only if the higher court issues a temporary
restraining order or a writ of preliminary injunction against the lower court.
(C) The lower court judge is given the discretion to continue with the principal case.
(D) The lower court judge will continue with the principal case if he believes that the special
civil action was meant to delay proceedings.
(E) Due respect to the higher court demands that the lower court judge temporarily suspend
the principal case.
XII. Findings of fact are generally not disturbed by the appellate court except in cases __________.
(1%)
(A) where the issue is the credibility of the witness
(B) where the judge who heard the case is not the same judge who penned the decision
(C) where the judge heard several witnesses who gave conflicting testimonies
(D) where there are substantially overlooked facts and circumstances that, if properly
considered, might affect the result of the case
XIII. Contempt charges made before persons, entities, bodies and agencies exercising quasi-judicial
functions against the parties charged, shall be filed with the Regional Trial Court of the place where
the __________. (1%)
(A) person, entity or agency exercising quasi-judicial function is located
(B) person who committed the contemptuous act resides
(C) act of contempt was committed
(D) party initiating the contempt proceeding resides
(E) charging entity or agency elects to initiate the action
XIV. When may a party le a second motion for reconsideration of a final judgment or final order?
(1%)
(A) At anytime within 15 days from notice of denial of the first motion for reconsideration.
(B) Only in the presence of extraordinarily persuasive reasons and only after obtaining
express leave from the ruling court.
(C) A party is not allowed to le a second motion for reconsideration of a final judgment or
final order.
(D) A party is allowed as a matter of right to le a second motion for reconsideration of a
judgment or final order.
XV. In an original action for certiorari, prohibition, mandamus, or quo warranto , when does the Court
of Appeals acquire jurisdiction over the person of the respondent? (1%)
(A) Upon the service on the respondent of the petition for certiorari, prohibition, mandamus
or quo warranto, and his voluntary submission to the jurisdiction of the Court of Appeals.
(B) Upon service on the respondent of the summons from the Court of Appeals.
(C) Upon the service on the respondent of the order or resolution of the Court of Appeals
indicating its initial action on the petition.
(D) By respondents voluntary submission to the jurisdiction of the Court of Appeals.

(E) Under any of the above modes.
XVI. Extra-territorial service of summons is proper in the following instances, except __________.
(1%)
(A) when the non-resident defendant is to be excluded from any interest on a property
located in the Philippines
(B) when the action against the non-resident defendant affects the personal status of the
plaintiff and the defendant is temporarily outside the Philippines
(C) when the action is against a non-resident defendant who is formerly a Philippine resident
and the action affects the personal status of the plaintiff
(D) when the action against the non-resident defendant relates to property within the
Philippines in which the defendant has a claim or lien
XVII. When is attachment improper in criminal cases? (1%)
(A) When the accused is about to abscond from the Philippines.
(B) When the criminal action is based on a claim for money or property embezzled or
fraudulently misapplied or converted to the use of the accused who is a broker, in the course
of his employment as such.
(C) When the accused is about to conceal, remove, or dispose of his property.
(D) When the accused resides outside the jurisdiction of the trial court.
XVIII. Maria was accused of libel. While Maria was on the witness stand, the prosecution asked her
to write her name and to sign on a piece of paper, apparently to prove that she authored the libelous
material. Maria objected as writing and signing her name would violate her right against selfincrimination. Was Marias objection proper? (1%)
(A) No, she can be cross examined just like any other witness and her sample signature
may be taken to verify her alleged authorship of the libelous statements.
(B) No, her right against self-incrimination is waived as soon as she became a witness.
(C) No, this privilege may be invoked only by an ordinary witness and not by the accused
when she opts to take the witness stand.
(D) The objection was improper under all of A, B, and C.
(E) The objection was proper as the right to self-incrimination is a fundamental right that
affects liberty and is not waived simply because the accused is on the witness stand.
XIX. Danny filed a complaint for damages against Peter. In the course of the trial, Peter introduced
evidence on a matter not raised in the pleadings. Danny promptly objected on the ground that the
evidence relates to a matter not in issue. How should the court rule on the objection? (1%)
(A) The court must sustain the objection.
(B) The court must overrule the objection.
(C) The court, in its discretion, may allow amendment of the pleading if doing so would serve
the ends of substantial justice.
(D) The court, in its discretion, may order that the allegation in the pleadings which do not
conform to the evidence presented be stricken out.
(E) The matter is subject to the complete discretion of the court.
XX. The Labor Arbiter, ruling on a purely legal question, ordered a workers reinstatement and this
ruling was affirmed on appeal by the NLRC whose decision, under the Labor Code, is final. The
companys recourse under the circumstances is to __________. (1%)
(A) file a motion for reconsideration and if denied, file a petition for review with the Court of
Appeals on the pure legal question the case presents.
(B) file a motion for reconsideration and if denied, appeal to the Secretary of Labor since a
labor policy issue is involved.
(C) file a motion for reconsideration and if denied, file a petition for certiorari with the Court of
Appeals on the ground of grave abuse of discretion by the NLRC.
(D) file a motion for reconsideration and if denied, file a petition for review on certiorari with
the Supreme Court since a pure question of law is involved.
(E) directly file a petition for certiorari with the Court of Appeals since a motion for
reconsideration would serve no purpose when a pure question of law is involved.

MERCANTILE LAW
October 20, 2013
8:00 A.M. - 12:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains FIFTEEN (15) pages including these Instructions pages. Check the
number of pages and the page numbers at the upper right hand corner of each page of this
There are TEN (10) Essay Questions numbered I to X, and FIFTEEN (15) Multiple Choice
Questions (MCQs)numbered I to XV (with subquestions), to be answered within four (4) hours.
The essay portion contains questions that are worth 80/o of the whole examination, while the MCQ
given premises.
any credit. Thus, always briefly but fully .explain your answers although the question does not
to the solution to the problem. You do not need tore-write or repeat the question in your Examination
Notebook.
offered.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
Antonio issued the following instrument:
August 10,2013
Makati City
P100,000.00
Sixty days after date, I promise to pay Bobby or his designated .representative the sum of ONE
HUNDRED THOUSAND PESOS(P 100,000.00) from my BPI Acct. No. 1234 if, by this due date, the
sun still sets in the west to usher in the evening and rises in the east the following morning to
welcome the day.
(Sgd.) Antonio Reyes
Explain each requirement of negotiability present or absent in the instrument. (8%)
II.
Benny applied for life insurance for Php 1.5 Million. The insurance company approved his
application and issued an insurance policy effective Nov. 6, 2008. Benny named his children as his
beneficiaries. On April 6, 2010, Benny died of hepatoma, a liver ailment.
The insurance company denied the children's claim for the proceeds of the insurance policy on the
ground that Benny failed to disclose in his application two previous consultations with his doctors for
diabetes and hypertension, and that he had been diagnosed to be suffering from hepatoma. The
insurance company also rescinded the policy and refunded the premiums paid.
Was the insurance company correct? (8%)
III.
From his first term in 2007, Congressman Abner has been endorsing his pork barrel allocations to
Twin Rivers in exchange for a commission of 40% of the face value of the allocation. Twin Rivers is
a non-governmental organization whose supporting papers, after audit, were found by the
Commission on Audit to be fictitious. Other than to prepare and submit falsified papers to support
the encashment of the pork barrel checks, Twin Rivers does not appear to have done anything on
the endorsed projects and Congressman Abner likewise does not appear to have bothered to
monitor the progress of the projects he endorsed. The congressman converted most of the
commissions he generated into US dollars, and deposited these in a foreign currency account with
Banco de Plata (BDP).
Based on amply-supported tips given by a congressman from another political party, the Anti-Money
Laundering Council sent BDP an order: (1) to confirm Cong. Abner's deposits with the bank and to
provide details of these deposits; and (2) to hold all withdrawals and other transactions involving the
congressman's bank accounts.
As counsel for BDP, would you advise the bank to comply with the order? (8%)
IV.
Rudy is a fine arts student in a university. He stays in a boarding house with Bernie as his
roommate. During his free time, Rudy would paint and leave his finished works lying around the
boarding house. One day, Rudy saw one of his works -an abstract painting entitled Manila Traffic
Jam - on display at the university cafeteria. The cafeteria operator said he purchased the painting
from Bernie who represented himself as its painter and owner.
Rudy and the cafeteria operator immediately confronted Bernie. While admitting that he did not do
the painting, Bernie claimed ownership of its copyright since he had already registered it in his name
with the National Library as provided in the Intellectual Property Code.
Who owns the copyright to the painting? Explain. (8%)
V.
You are a member of the legal staff of a law firm doing corporate and securities work for Coco
Products Inc., a company with unique products derived from coconuts and whose shares are traded
in the Philippine Stock Exchange. A partner in the law firm, Atty. Buenexito, to whom you report, is
the Corporate Secretary of Coco Products. You have long been investing in Coco Products stocks
even before you became a lawyer.
While working with Atty. Buenexito on another file, he accidentally gave you the Coco Products file
containing the company's planned corporate financial rehabilitation. While you knew you had the
wrong file, your curiosity prevailed and you browsed through the file before returning it. Thus, you
learned that a petition for financial rehabilitation is imminent, as the company could no longer meet
its obligations as they fell due.
Soon after, your mother is rushed to the hospital for an emergency operation, and you have to raise
money for her hospital bills. An immediate option for you is to sell your Coco Products shares. The
sale would be very timely because the price of the company's stocks are still high.
Would you sell the shares to raise the needed funds for your mother's hospitalization? Take into
account legal (5%) and ethical (3%) considerations. (8% total points)
VI.
Delano Cruz is in default in the payment of his existing loan from BDP Bank. To extend and
restructure this loan, Delano agreed to execute a trust receipt in the bank's favor covering the iron
pellets Delano imported from China one year earlier. Delano subsequently succeeded in selling the
iron pellets to a smelting plant, but the proceeds went to the payment of the separation benefits of
his employees who were laid off as he reduced his operations.
When the extended loan period expired without any significant payment from Delano (not even to
the extent of the proceeds of the sale of the iron pellets),BDP Bank consulted you on how to
proceed against Delano. The bank is contemplating the filing of estafa pursuant to the provisions of
Pres. Decree No. 115 (Trust Receipts Law) to force Delano to tum in at least the proceeds of the
sale of the iron pellets.
Would you, as bank counsel and as an officer of the court, advise the bank to proceed with its
contemplated action? (8%)
VII.
Stable Insurance Co. (SIC) and St. Peter Manufacturing Co. (SPMC) have had a long-standing
insurance relationship with each other; SPMC secures the comprehensive fire insurance on its plant
and facilities from SIC. The standing business practice between them has been to allow SPMC a
credit period of 90 days from the renewal of the policy within which to pay the premium.
Soon after the new policy was issued and before premium payments could be made, a fire gutted
the covered plant and facilities to the ground. The day after the fire, SPMC issued a manager's
check to SIC for the fire insurance premium, for which it was issued a receipt; a week later SPMC
issued its notice of loss.
SIC responded by issuing its own manager's check for the amount of the premiums SPMC had paid,
and denied SPMC's claim on the ground that under the "cash and carry" principle governing fire
insurance, no coverage existed at the time the fire occurred because the insurance premium had not
been paid.
Is SPMC entitled to recover for the loss from SIC? (8%)
VIII.
In the November 2010 stockholders meeting of Greenville Corporation, eight (8) directors were
elected to the board. The directors assumed their posts in January 20 ll. Since no stockholders'
meeting was held in November 2011, the eight directors served in a holdover capacity and thus
continued discharging their powers.
In June 2012, two (2) of Greenville Corporation's directors- Director A and Director B -resigned from
the board. Relying on Section 29 of the Corporation Code, the remaining six (6) directors elected
two (2) new directors to fill in the vacancy caused by the resignation of Directors A and B.
Stockholder X questioned the election of the new directors, initially, through a letter-complaint
addressed to the board, and later (when his letter-complaint went unheeded), through a derivative
suit filed with the court. He claimed that the vacancy in the board should be filled up by the vote of
the stockholders of Greenville Corporation. Greenville Corporation's directors defended the legality
of their action, claiming as well that Stockholder X's derivative suit was improper.
Rule on the issues raised. (8%)

IX.
Fil-Asia Air Flight 9 I 6 was on a scheduled passenger flight from Manila when it crashed as it landed
at the Cagayan de Oro airport; the pilot miscalculated the plane's approach and undershot the
runway. Of the I 50 people on board, ten (10) passengers died at the crash scene.
Of the ten who died, one was a passenger who managed to leave the plane but was run over by an
ambulance coming to the rescue. Another was an airline employee who hitched a free ride to
Cagayan de Oro and who was not in the passenger manifest.
It appears from the Civil Aeronautics Authority investigation that the co-pilot who had control of the
plane's landing had less than the required flying and landing time experience, and should not have
been in control of the plane at the time. He was allowed to fly as a co-pilot because of the scarcity of
pilots - Philippine pilots have been recruited by foreign airlines under vastly improved flying terms
and wages so that newer and less trained pilots are being locally deployed. The main pilot, on the
other hand, had a very high level of blood alcohol at the time of the crash.
You are part of the team that the victims hired to handle the case for them as a group. In your case
conference, the following questions came up:
(A) Explain the causes of action legally possible under the given facts against the airline and
the pilots; whom will you specifically implead in these causes of action? (5%)
(B) How will you handle the cases of the passenger run over by the ambulance and the
airline employee allowed to hitch a free ride to Cagayan de Oro? (3%)
X.
Bell Philippines, Inc. (BelPhil) is a public utility company, duly incorporated and registered with the
Securities and Exchange Commission. Its authorized capital stock consists of voting common
shares and non-voting preferred shares, with equal par values of P100.00/share. Currently, the
issued and outstanding capital stock of BelPhil consists only of common shares shared between
Bayani Cruz, a Filipino with 60% of the issued common shares, and Bernard Fleet, a Canadian, with
40%.
To secure additional working fund, BelPhil issued preferred shares to Bernard Fleet equivalent to the
currently outstanding common shares. A suit was filed questioning the corporate action on the
ground that the foreign equity holdings in the company would now exceed the 40% foreign equity
limit allowed under the Constitution for public utilities.
Rule on the legality of Bernard Fleet's current holdings. (8%)
I. Claude, the registered stockholder of 1 000 shares in ABC Corp., pledged the shares to Conrad by
endorsement in blank of the covering stock certificates and, execution of a Deed of Assignment of
Shares of Stock, intended as collateral for a loan of P1.0 Million that was also supported by a
separate promissory note.

I. (1) Under these facts, is there a valid pledge of the shares of stock to Conrad? (1%)
(A) No, because shares of stock are intangible personal properties whose
possession cannot be delivered and, hence, cannot be the subject of a pledge.
(B) No, because the pledge of shares of stock requires double registration with the
Register of Deeds of the principal place of business of the corporation and of the
residence of the pledgor.
(C) Yes, because endorsement and delivery of the certificates of stock is equivalent
to the transfer of possession of the covered shares to the pledgee.
(D) Yes, because the execution of the Deed of Assignment of Shares of Stock is
equivalent to a lawful pledge of the shares of stock.
I. (2) After Claude defaulted on the loan, Conrad sought to have the shares registered in his
name in the books of the corporation. If you are the Corporate Secretary of ABC
Corporation, would you register the shares in the name of Conrad without any written
instruction from Claude? (1%)
(A) Yes, since the endorsement and delivery of the certificates of stock executed by
Claude constitute the legal authority to cancel the shares in his name and to place
them in Conrad's name.
(B) Yes, since the execution of the Deed of Assignment by Claude would constitute
the legal authority to cancel the shares in his name and place them in Conrad's
name.
(C) No, because corporate officers can only take direct instructions from the
registered owners on the proper disposition of shares registered in their names.
(D) No, because the corporation has a primary lien on the shares covering the
unpaid subscription.
II. A foreign delegation of businessmen and investment bankers called on your law firm to discuss
the possibilities of investing in various projects in the Philippines, and wanted your thoughts on
certain issues regarding foreign investments in the Philippines.
II. (1)The delegation has been told about the Foreign Investments Act of 1991, as amended
(FIA '91), and they asked what exactly is the law's essential thrust regarding foreign
investments in Philippine business and industries.
You replied that FIA '91 essentially reflects __________. (1 %)
(A) the "Filipino First Policy"
(B) the "Foreign Investments Positive Lists" concept

(C) the "Foreign Investments Negative Lists" concept
(D) the "Control Test" concept(E) All of the above.
II. (2)The delegation asked: aside from Filipino ctt1zens, what entities would fall under the
definition of "Philippine National" under FIA '91?
You replied that the definition of "Philippine national" under FIA '91 covers __________.
(1%)
(A) domestic partnerships wholly composed of Filipino citizens
(B) domestic corporations 60% of whose capital stock, outstanding and entitled to
vote, are owned and held by Filipino citizens
(C) foreign corporations considered as doing business in the Philippines under the
Corporation Code, 100% of whose capital stock, outstanding and entitled to vote, are
wholly-owned by Filipino citizens
(D) All of the above, because the law considers the juridical personality, whether
domestic or foreign, as a mere medium; the test of nationality is on the individuals
who control the medium
(E) None of the above, because the term Philippine national can only cover
individuals and not juridical entities.
II. (3) The delegation heard that foreigners can invest up to 100% of the equity in "export
oriented enterprises" and you were asked exactly what the term covers.
You replied that an "export oriented enterprise" under FIA '91 is an enterprise that
__________. (1%)
(A) only engages in the export of goods and services, and does not sell goods or
services to the domestic market
(B) exports consistently at least 40% of its goods or services, and sells at least 60%
of the rest to the domestic market
(C) exports consistently at least 60% of the goods or services produced, and sells at
least 40% of the rest to the domestic market
(D) exports consistently at least 60% of its goods or services produced, and can sell
goods or services to the domestic market
II. (4) As a last question and by way of a concrete example, a delegation member finally
inquired - which of the following corporations or businesses in the Philippines may it invest in
and up to what extent? (1%)
(A) A lifestyle magazine publication corporation, up to 40% equity
(B) An advertising corporation, up to 100% equity
(C) A commercial bank, up to 60o/o equity
(D) A jeepney manufacturing corporation, up to 100% equity
(E) A real estate development corporation, up to 60% equity
III. Dennis subscribed to 10,000 shares of XYZ Corporation with a par value of P100 per share.
However, he paid only 25% of the subscription or P250,000.00. No call has been made on the
unpaid subscription.
How many shares is Dennis entitled to vote at the annual meeting of the stockholders of XYZ? (1%)
(A) 10,000 shares
(B) 2,500 shares
(C) 100 shares
(D) 0 shares
IV. ABC Corp. issued redeemable shares. Under the terms of the issuance, the shares shall be
redeemed at the end of 10 years from date of issuance, at par value plus a premium of 10%.
Choose the correct statement relating to these redeemable shares. (1%)
(A) ABC Corp. would need unrestricted retained earnings to be able tore deem the shares.
(B) Corporations are not allowed to issue redeemable shares; thus, the issuance by ABC
Corp. is ultra vires.
(C) Holders of redeemable shares enjoy a preference over creditors.
(D) ABC Corp. may redeem the shares at the end of 10 years without need for unrestricted
retained earnings provided that, after the redemption, there are sufficient assets to cover its
debts.
(E) All of the above are incorrect.
V. Arnold, representing himself as an agent of Brian for the sale of Brian's car, approached Dennis
who appeared interested in buying the car. At Arnold's prodding, Dennis issued a crossed check
payable to Brian for P25,000.00 on the understanding that the check would only be shown to Brian
as evidence of Dennis' good faith and interest in buying the car. Instead, Arnold used the check to
pay for the medical expenses of his wife in Brian's clinic after Brian, a doctor, treated her.
Is Brian a holder in due course (HI DC)? (1%)
(A) Yes, Brian is a HIDC because he was the payee of the check and he received it for
services rendered.
(B) Yes, Brian is a HIDC because he did not need to go behind the check that was payable
to him.
(C) No, Brian is not a HIDC because Dennis issued the check only asevidence of good faith
and interest in buying the car.
(D) No, Brian is not a HIDC because Brian should have been placed on notice: the check
was crossed in his favor and Arnold was not the drawer.
(E) No, Brian is not a HIDC because the requisite consideration to Dennis was not present.
VI. Gawsengsit Corp. is a corporation incorporated in Singapore. It invested in Bumblebee Corp., a
Philippine corporation, by acquiring 30% of its shares. As a result, Gawsengsit Corp. nominated
30o/o of the directors of Bumblebee Corp., all of whom are Singaporeans and officers of Gawsengsit
Corp.
Choose the correct statement relating to Gawsengsit Corp. (1%)
(A) Gawsengsit Corp. is doing business in the Philippines and requires alicense from the
Securities and Exchange Commission (SEC).
(B) Gawsengsit Corp. is not doing business in the Philippines by its mere investment in a
Philippine corporation and does not need a license from the SEC.
(C) Gawsengsit Corp. has to appoint a resident agent in the Philippines.
(D) Gawsengsit Corp. cannot elect directors in Bumblebee Corp.
(E) All the above choices are incorrect.
VII. The BIR assessed ABC Corp. for deficiency income tax for taxable year2010 in the amount of
P26,731,208.00, inclusive of surcharge and penalties.
The BIR can __________. (1%)
(A) run after the directors and officers of ABC Corp. to collect the deficiency tax and their
liability will be solidary
(B) run after the stockholders of ABC Corp. and their liability will be joint
(C) run after the stockholders of ABC Corp. and their liability will be solidary
(D) run after the unpaid subscriptions still due to ABC Corp., if any
(E) None of the above choices is correct.
VIII. Anton imported perfumes from Taiwan and these were released to him by the bank under a
trust receipt. While the perfumes were in Anton's warehouse, thieves broke in and stole all of them.
Who will shoulder the loss of the stolen perfumes? (1%)
(A) The loss of the perfumes will be borne by the bank in whose behalf the perfumes were
held in trust.
(B) Anton will bear the loss.
(C) The exporter can hold both the bank and Anton liable for the loss.
(D) The exporter from whom Anton bought the perfumes will bear the loss.
(E) No one bears the loss for an unforeseen event.
IX. A bank may acquire real property __________. (1%)
(A) by purchase at a public sale of properties levied to satisfy tax delinquencies
(B) by purchase from a real estate corporation in the ordinary course of the bank's business
(C) through dacion en pago in satisfaction of a debt in favor of the bank
(D) in exchange for the purchase of shares of stocks of the bank
(F) None of the above.
X. Under the Anti-Money Laundering Act, a depositor's bank account may be frozen __________.
(1%)
(A) by the bank when the account is the subject of a suspicious or covered transaction report
(B) by the Anti-Money Laundering Council (AMLC) when the account belongs to a person
already convicted of money laundering
(C) by the Regional Trial Court, upon ex parte motion by the AMLC, in a criminal prosecution
for money laundering pending before it
(D) by the Court of Appeals motu proprio in an appeal from a judgment of conviction of a
criminal charge for money laundering

(E) In none of the above.
XI. Unknown to the other four proponents, Enrico (who had been given the task of attending to the
Articles of Incorporation of the proposed corporation, Auto Mo,Ayos Ko) misappropriated the filing
fees and never filed the Articles of Incorporation with the Securities and Exchange Commission
(SEC). Instead, he prepared and presented to the proposed incorporators a falsified SEC certificate
approving the Articles. Relying on the falsified SEC certificate, the latter began assuming and
discharging corporate powers.
Auto Mo, Ayos Ko is a __________. (1%)
(A) de jure corporation
(B) de facto corporation
(C) corporation by estoppel
(D) general partnership
XII. Preferred shares cannot vote on the proposal __________. (1%)
(A) to include other corporate officers in the corporation's by-laws
(B) to issue corporate bonds
(C) to shorten the corporate term
(D) All of the above.
XIII. In 2010, the Philippine National Police declared Kaddafy Benjelani "Public Enemy No. 1"
because of his terrorist activities in the country that have resulted in the death of thousands of
Filipinos. A ransom of P15 million was placed on Kaddafy Benjelani's head.
Worried about the future of their family, Kaddafy Benjelani's estranged wife, Aurelia, secured in
December 2010 a life insurance policy on his life and designated herself as the beneficiary.
Is the policy valid and binding? (1%)
(A) Yes, the policy is valid and binding because Aurelia has an insurable interest on the life
of Kaddafy Benjelani.
(B) No, the policy is not valid and binding because Kaddafy Benjelani has been officially
declared a public enemy.

(C) Yes, the policy is valid and binding because it has been in force for more than two years.
(D) No, the policy is not valid and binding since the spouses' estrangement removed
Aurelia's insurable interest in Benjelani's life.
XIV. Muebles Classico, Inc. (MC), a Manila-based furniture shop, purchased hardwood lumber from
Surigao Timber, Inc. (STI), a Mindanao-based logging company. MC was to pay STI the amount of
P5.0 million for 50 tons of lumber. To pay STI, MC opened a letter of credit with Banco de Plata
(BDP). BOP duly informed STI of the opening of a letter of credit in its favor.
In the meantime, MC- which had been undergoing financial reverses- filed a petition for corporate
rehabilitation. The rehabilitation court issued a Stay Order to stay the enforcement of all claims
against MC.
After shipping the lumber, STJ went to BDP, presented the shipping documents, and demanded
payment of the letter of credit opened in its favor. MC, on the other hand, informed the bank of the
Stay Order and instructed it to deny payment to STI because of the Stay Order. BDP comes to you
for advice. Your best advice is to __________. (1%)
(A) grant STI's claim. Under the "Independence Principle," the bank deals only with the
documents and not the underlying circumstances; hence, the presentation of the letter of
credit is sufficient.
(B) deny STI's claim. The Stay Order covers all claims against the debtor and binds all its
creditors. The letter of credit is a claim against the debtor that is covered by the Stay Order.
(C) grant STI's claim. The letter of credit is not a claim against the debtor under
rehabilitation, but against the bank which has assumed a solidary obligation.
(D) deny STI's claim. If the bank disregards the Stay Order, it may be subject to contempt by
the rehabilitation court. STI should file its claim with the rehabilitation court.
(E) file an action for inter pleader to resolve the parties' competing claims.
XV. Akiro of Tokyo, Japan sent various goods to his friend Juan in Cebu City, Philippines, through
one of the vessels of Worth well Shippers, Inc., an American corporation. En route to Cebu City, the
vessel had two stops, first in Hong Kong, and second, in Manila.
XV. (1) While travelling from Tokyo to Hong Kong, the goods were damaged. What law will
govern? (1%)
(A) Japanese law
(B) Hong Kong law
(C) Chinese law

(D) Philippine law
(E) American law
XV. (2) Assuming Philippine law to be applicable and Juan fails to file a claim with the carrier,
may he still commence an action to recover damages with the court? (1%)
(A) No, the failure to file a claim with the carrier is a condition precedent for recovery.
(B) Yes, provided he files the complaint within 10 years from delivery.
(C) Yes, provided he files the complaint within 10 years from discovery of the
damage.
(D) Yes, provided he files the complaint within 1 year from delivery.
(E) Yes, provided he files the complaint within 1 year from discovery of the damage.

CRIMINAL LAW
October 20, 2013
2:00 P.M - 6:00 P.M.

INSTRUCTIONS
There are ELEVEN (11) Essay Questions numbered I to XI, and TWENTY FIVE (25) Multiple Choice
Questions(MCQs) numbered I to XXV, to be answered within four (4) hours.
The essay portion contains questions that are worth 80o/o of the whole examination while the MCQ
every sheet in your Notebook. Note well the allocated percentage points for each number, question,
or sub-question. In your answers, use the numbering system in the questionnaire.
given premises.
to the solution to the problem. You do not need to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter (A, B, C, D, or E)
corresponding to your chosen answer. The MCQ answers should begin in the page following the
last page of your essay answers.
offered.
Notebook that can serve as an identifying mark/s (such as names that are not in the given
questions, prayers, or private notes to the Examiner).
Writing, leaving or making any distinguishing or identifying mark in the exam Notebook is considered
cheating and can disqualify you for the Bar examinations.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
Bruno was charged with homicide for killing the 75-year old owner of his rooming house. The
prosecution proved that Bruno stabbed the owner causing his death; and that the killing happened
at 10 in the evening in the house where the victim and Bruno lived. Bruno, on the other hand,
successfully proved that he voluntarily surrendered to the authorities; that he pleaded guilty to the
crime charged; that it was the victim who first attacked and did so without any provocation on his
(Bruno's) part, but he prevailed because he managed to draw his knife with which he stabbed the
victim. The penalty for homicide is reclusion temporal.

Assuming a judgment of conviction and after considering the attendant circumstances, what penalty
should the judge impose? (7%)
II.
While walking alone on her way home from a party, Mildred was seized at gun point by Felipe and
taken on board a tricycle to a house some distance away. Felipe was with Julio, Roldan, and Lucio,
who drove the tricycle.
At the house, Felipe, Julio, and Roldan succeeded in having sexual intercourse with Mildred against
her will and under the threat of Felipe's gun. Lucio was not around when the sexual assaults took
place as he left after bringing his colleagues and Mildred to their destination, but he returned
everyday to bring food and the news in town about Mildred's disappearance. For five days, Felipe,
Julio and Roldan kept Mildred in the house and took turns in sexually assaulting her. On the 6th day,
Mildred managed to escape; she proceeded immediately to the nearest police station and narrated
her ordeal.
What crime/s did Felipe, Julio, Roldan, and Lucio commit and what was their degree of
participation? (7%)
III.
Modesto and Abelardo are brothers. Sometime in August, 1998 while Abelardo was in his office,
Modesto, together with two other men in police uniform, came with two heavy bags. Modesto asked
Abelardo to keep the two bags in his vault until he comes back to get them. When Abelardo later
examined the two bags, he saw bundles of money that, in his rough count, could not be less than P5
Million. He kept the money inside the vault and soon he heard the news that a gang that included
Modesto had been engaged in bank robberies. Abelardo, unsure of what to do under the
circumstances, kept quiet about the two bags in his vault. Soon after, the police captured, and
secured a confession from, Modesto who admitted that their loot had been deposited with Abelardo.
What is Abelardo's liability? (7%)
IV.
In her weekly gossip column in a tabloid, Gigi wrote an unflattering article about Pablo, a famous
singer, and his bitter separation from his wife. The article portrayed Pablo as an abusive husband
and caused him to lose lucrative endorsement contracts. Pablo charged Gigi with libel. In her
defense, Gigi countered that she did not commit libel because Pablo has attained the status of a
public figure so that even his personal life has become a legitimate subject of public interest and
comment.
Is Gigi correct? (7%)
V.
Michael was 17 years old when he was charged for violation of Sec. 5 of R.A. 9165 (illegal sale of
prohibited drug). By the time he was convicted and sentenced, he was already 21 years old. The
court sentenced him to suffer an indeterminate penalty of imprisonment of six (6) years and one (1)
day of prision mayor, as minimum, to seventeen (17) years and four(4) months of reclusion
temporal, as maximum, and a fine of P500,000.Michael applied for probation but his application was
denied because the probation law does not apply to drug offenders under R.A. 9165. Michael then
sought the suspension of his sentence under R.A. 9344 or the Juvenile Justice and Youth Welfare
Code.
Can Michael avail of the suspension of his sentence provided under this law? (7%)
VI.
Roberto bought a Toyota Fortuner from Iigo for P500,000. While driving his newly-bought car,
Roberto met a minor accident that made the examination of his vehicle's Registration Certificate
necessary. When the policeman checked the plate, chassis and motor numbers of the vehicle
against those reflected in the Registration Certificate, he found the chassis and motor numbers to be
different from what the Registration Certificate stated. The Deed of Sale covering the sale of the
Fortuner, signed by Iigo, also bore the same chassis and motor numbers as Roberto's Registration
Certificate. The chassis and motor numbers on the Fortuner were found, upon verification with the
Land Transportation Office, to correspond to a vehicle previously reported as carnapped.
Roberto claimed that he was in good faith; Iigo sold him a carnapped vehicle and he did not know
that he was buying a carnapped vehicle.
If you were the prosecutor, would you or would you not charge Roberto with a crime? (7%)
VII.
Miss Reyes, a lady professor, caught Mariano, one of her students, cheating during an examination.
Aside from calling Mariano's attention, she confiscated his examination booklet and sent him out of
the room, causing Mariano extreme embarrassment.
In class the following day, Mariano approached Miss Reyes and without any warning, slapped her
on the face. Mariano would have inflicted grave injuries on Miss Reyes had not Dencio, another
student, intervened. Mariano then turned his ire on Dencio and punched him repeatedly, causing
him injuries.
What crime or crimes, if any, did Mariano commit? (7%)
VIII.
William is the son-in-law of Mercedes who owns several pieces of real property. In 1994, William's
wife, Anita, died. In 1996, William caused the preparation of a Special Power of Attorney (SPA)
giving him the authority to sell two (2) parcels of land registered in the name of Mercedes. The
signature of Mercedes in the SPA was forged and, through this forged SPA and without the consent
and knowledge of Mercedes, William succeeded in selling the two (2) parcels for Php 2,000,000. He
pocketed the proceeds of the sale.
Mercedes eventually discovered William's misdeeds and filed a criminal complaint. William was
subsequently charged with estafa through falsification of public document.
Was the criminal charge proper? (7%)

IX.
Roman and Wendy are neighbors. On Valentine's Day, without prior notice, Roman visited Wendy at
her condo to invite her to dinner, but Wendy turned him down and abruptly left, leaving her condo
door unlocked. Roman attempted to follow, but appeared to have second thoughts; he simply went
back to Wendy's condo, let himself in, and waited for her return. On Wendy's arrival later that
evening, Roman grabbed her from behind and, with a knife in hand, forced her to undress. Wendy
had no choice but to comply. Roman then tied Wendy's hands to her bed and sexually assaulted her
five (5) times that night.
Roman was charged with, and was convicted of, five (5) counts of rape, but the judge did not
impose the penalty of reclusion perpetua for each count. Instead, the judge sentenced Roman to 40
years of imprisonment on the basis of the three-fold rule.
Was the judge correct? (7%)
X.
Frank borrowed P1,000,000 from his brother Eric. To pay the loan, Frank issued a post-dated check
to be presented for payment a month after the transaction. Two days before maturity, Frank called
Eric telling him he had insufficient funds and requested that the deposit of the check be deferred.
Nevertheless, Eric deposited the check and it was dishonored. When Frank failed to pay despite
demand, Eric filed a complaint against him for violation of Batas Pambansa Big. 22 (The Bouncing
Checks Law).
Was the charge brought against Frank correct? (7%)
XI.
Assume that you are a member of the legal staff of Senator Salcedo who wants to file a bill about
imprisonment at the National Penitentiary in Muntinlupa. He wants to make the State prison a
revenue earner for the country through a law providing for premium accommodations for prisoners
(other than those under maximum security status) whose wives are allowed conjugal weekend visits,
and for those who want long-term premium accommodations.
For conjugal weekenders, he plans to rent out rooms with hotel-like amenities at rates equivalent to
those charged by 4-star hotels; for long-term occupants, he is prepared to offer room and board with
special meals in air conditioned single-occupancy rooms, at rates equivalent to those charged by 3star hotels.
What advice will you give the Senator from the point of view of criminal law, taking into account the
purpose of imprisonment (7%) and considerations of ethics and morality (3%)? (10% total points)
I. The acquittal of an accused shall bar the civil action arising from the crime where the judgment of
acquittal holds that __________. (0.5%)
(A) the acquittal is based on reasonable doubt

(B) the liability of the accused is not criminal but civil in nature
(C) the civil liability does not arise from or is not based on the criminal act for which the
accused has been acquitted
(D) the accused did not commit the act imputed to him
II. Subsidiary liability may be imposed on the following, except __________. (0.5%)
(A) innkeepers, in relation to the crime committed in their establishment
(B) employers engaged in industry, for the crime committed by their employees
(C) parents of minors who act with discernment in committing crimes
(D) hospital administrators or owners, for crimes committed by their hospital nurses
III. Passion or obfuscation may be appreciated __________. (0.5%)
(A) if it arises from jealousy in an amorous relationship between a married man and a single
woman
(B) if it arises from jealousy of a man who has been living-in with the woman for the past 20
years
(C) if it arises from jealousy with immoral, lustful and vindictive sentiments of the offender
against the victim
(D) in none of the above situations
IV. Who among the following accused is entitled to a privileged mitigating circumstance that would
lower the imposable penalty by one degree? (0.5%)
(A) A minor above 15 years old and below 18 years old who acted with discernment.
(B) One who, in fulfillment of his duty to carry out the warrant of arrest of a fugitive, shot the
fugitive to death without ascertaining his identity.
(C) One who defended himself against an unlawful aggression but used unreasonable
means and gave provocation.
(D) All of the above.
V. Conspiracy to commit a felony is punishable only in cases where the law specifically provides a
penalty. Which of the following combinations contain specific felonies under the Revised Penal
Code? (0.5%)
(A) Conspiracy to commit treason, conspiracy to commit rebellion, conspiracy to commit

coup d'etat, conspiracy to commit misprision of treason.
(B) Conspiracy to commit rebellion, conspiracy to commit coup d'etat, conspiracy to commit
treason, conspiracy to commit sedition.
(C) Conspiracy to commit rebellion or insurrection, conspiracy to commit sedition, conspiracy
to commit illegal assemblies, conspiracy to commit treason.
(D) Conspiracy to commit treason, conspiracy to commit sedition, conspiracy to commit
terrorism.
VI. Choose the correct circumstance when a woman may be held liable for rape: (0.5%)
(A) With the use of force or intimidation.
(B) When the rape is committed by two or more persons.
(C) When the offender uses an instrument and inserts it m the mouth of the victim.
(D) When she befriends and puts a sleeping pill in the victim's drink to enable her husband
to have intercourse with the victim.
VII. The death of the accused extinguishes his criminal liability but civil liability is not extinguished.
(0.5%)
(A) when the death of the accused occurred before conviction
(B) when the death of the accused occurred after conviction and after he has perfected his
appeal from conviction
(C) when the death of the accused occurred during the pendency of his appeal
(D) when the death of the accused occurred after final judgment
VIII. Compelling the pilot of an aircraft of Philippine Registry to change its destination is
__________. (0.5%)
(A) grave coercion
(B) a violation of the Anti-Hijacking Law or R.A. No. 6235
(C) grave threats
(D) a violation of the Human Security Act of 2007 or the Anti-Terrorism Law
IX. Choose from the list below the correct principle in considering "motive". (0.5%)
(A) If the evidence is merely circumstantial, proof of motive is essential.
(B) Generally, proof of motive is not necessary to pin a crime on the accused if the
commission of the crime has been proven and the evidence of identification is convincing.
(C) Motive is important to ascertain the truth between two antagonistic theories.
(D) Motive is relevant if the identity of the accused is uncertain.
(E) All of the above are correct.
X. Luis was sentenced to prision mayor and to pay a fine of P50,000, with subsidiary imprisonment
in case of in solvency. Is the sentence correct? (0.5%)
(A) Yes, because Luis has no property to pay for the fine, so he must suffer the equivalent
imprisonment provided by law in lieu of fine.
(B) No, because subsidiary imprisonment is applicable only when the penalty imposed is
prision correccional or below.
(C) Yes, because the sentence says so.
(D) No, because the subsidiary imprisonment is applicable only when the penalty imposed is
limited to a fine.
XI. Anthony drew a promissory note and asked his tem1inally-ill and dying business partner Ben to
sign it. The promissory note bound Ben to pay Anthony One Million Pesos (P1,000,000) plus 12%
interest, on or before June 30, 2011.
If Ben died before the promissory note's due date and Anthony still collected P1,000,000 with
interest from Ben's estate, what crime/s did Anthony commit? (1%)
(A) Falsification of a public document.
(B) Falsification of a private document and estafa.
(C) Estafa.
(D) Estafa thru falsification of a private document.

XII. Out of spite and simply intending to put Gina to shame for breaking off with him, Ritchie emptied
a gallon of motor oil on the school's stairway where Gina usually passed. Gina, unaware of what
Ritchie did, used the slippery stairway and slipped, hitting her head on the stairs. Gina died from
brain hemorrhage.
What crime did Ritchie commit? (1%)
(A) Murder.
(B) Reckless imprudence resulting in homicide.
(C) Homicide.
(D) Impossible crime of homicide.
(E) None.
XIII. Santos was sentenced to suffer imprisonment in three separate judgments: 6 months and 1 day
to 4 years for attempted homicide; 6 yearsand1day to 8 years for frustrated homicide; and 6 years
and1day to20years for homicide. After his 20th year in the National Penitentiary, Santos filed a
petition for habeas corpus claiming that he had fully served his sentence of 20 years and should
therefore be immediately released from imprisonment.
Was Santos correct? (1%)
(A) Yes, because he served his sentences simultaneously so that his 20 years of
incarceration was sufficient.
(B) No, because multiple sentences are served successively not simultaneously.
(C) No, only penalties other than imprisonment can be served simultaneously.
(D) Yes, because after he has served the minimum of his penalties, he can now be released.
XIV. Amelia, a famous actress, bought the penthouse unit of a posh condominium building in Taguig
City. Every night, Amelia would swim naked in the private, but open air, pool of her penthouse unit. It
must have been obvious to Amelia that she could be seen from nearby buildings. In fact, some
residents occupying the higher floors of the nearby residential buildings did indeed entertain
themselves and their friends by watching her swim in the nude from their windows.
What crime did Amelia commit? (1%)
(A) Alarms and scandals because her act of sw1mmmg naked disturbs the public tranquility.
(B) Grave scandal because she committed highly scandalous acts that are offensive to
decency or good customs.
(C) Immoral doctrines, obscene publications and exhibitions, and indecent shows under
Article 201 of the Revised Penal Code, because her act of swimming naked is akin to an
indecent live show.
(D) Amelia did not commit any crime because the swimming pool is located in her private
home.
XV. After drinking a bottle of Jack Daniels, Jonjon drove his BMW sports car at high speed, rammed
into a group of crossing pedestrians, and hit a traffic light post. The incident caused the death of one
(1) pedestrian, serious injuries to three (3) others, and the destruction of the traffic light post.
If you were the prosecutor, what would you charge Jonjon? (1%)
(A) Homicide with serious physical injuries through simple negligence.
(B) Damage to property, serious physical injuries and homicide through reckless negligence.
(C) Simple negligence resulting in damage to property, serious physical injuries and
homicide.
(D) Reckless imprudence resulting in homicide, serious physical injuries and damage to
property.
XVI. On June 1, 2011, Efren bought a used top-of-the-line Mercedes Benz for P7.5 Million from
Switik Trading. On the same day, he paid P2,500,000 in cash and issued Switik Trading a check for
P5,000,000 dated July 31, 2011. He then brought the car to a friend's house and hid it in an
underground garage. The check Efren issued was dishonored for insufficiency of funds when
presented for payment on due date. Efren was asked to honor and pay the check or to return the
car, but he refused.
What crime/s did Efren commit? (1%)
(A) Carnapping.
(B) Estafa and carnapping.
(C) A violation of BP Blg. 22.
(D) Estafa and a violation of BP Blg. 22.
XVII. In his Answer to a complaint, Atty. Jose (counsel for the defendant) stated that Atty. Agrada
(counsel for the plaintiff) is "bobo, inutile, good for nothing, stupid, and a menace to clients."
Can Atty. Jose be held criminally liable for libel? (1%)
(A) No, because an Answer to a complaint is a court pleading where communications made
are privileged; the writer cannot be held liable for libel.

(B) Yes, because the statement casts aspersion on the character, integrity and reputation of
Atty. Agrada as a lawyer and exposed him to public ridicule.
(C) Yes, although a court pleading is a privileged communication, malicious statements that
are irrelevant and impertinent to the issue in the pleading may be libelous.
(D) Yes, there was a malicious intent to ridicule Atty. Agrada as a lawyer.
(E) No, because the statement is in a pleading, but Atty. Jose can be charged
administratively for misconduct before the Supreme Court.
XVIII. Using his charms because of his movie star looks, Phil, in a movie date with Lyn, a 19-year
old colegiala, kissed her on the cheek and stroked her pubic hair. Lyn shouted for help and Phil was
arrested. Phil is liable for __________. (1%)
(A) rape by sexual assault for using his fingers
(B) violation of the Anti-Child Abuse Law for lascivious conduct
(C) unjust vexation
(D) acts of lasciviousness
XIX. If Rod killed Irene, his illegitimate daughter, after taking her diamond earrings and forcing her to
have sex with him, what crime/s should Rod be charged with? (1%)
(A) Robbery and rape with parricide.
(B) Robbery, rape and parricide.
(C) Rape with homicide and theft.
(D) Rape with homicide.
XX. From an extension line, Ricardo overheard a telephone conversation between Julito and Atty.
Hipolito. The latter (Atty. Hipolito) was asking money from Julito in exchange for dropping the
extortion charge filed against Julito. Ricardo was charged of violating the Anti-Wire Tapping Act or
R.A. 4200.
Under these facts, was there a violation as charged? (1%)
(A) Yes, because the conversation was private in nature.
(B) Yes, because the conversation was overheard without the consent of the parties, Julito
and Atty. Hipolito.
(C) No, because what is punishable is intentional listening to a conversation through a wire.
(D) No, because a telephone extension line is not the device or arrangement contemplated
by the law and the use of an extension line cannot be considered as wire tapping.
XXI. Judge Talim, upon complaint and application of the realty corporation Batmanson, Inc., issued a
writ of preliminary injunction against Darjeeling Ventures, Inc., a competitor of Batmanson, Inc.,
without notice and hearing.
If you were counsel for Darjeeling Ventures, Inc., what criminal charge should you file against Judge
Talim? (1%)
(A) Rendering a manifestly unjust judgment.
(B) Knowingly rendering an unjust interlocutory order.
(C) Causing undue injury through manifest partiality under R.A. No. 3019.
(D) Bribery.
XXII. George, the 20-year old son of a rich politician, was arrested at the NAIA arrival lounge and
found positive for opium, a dangerous drug. When arrested, 15 grams of cocaine were found in his
backpack.
What offense would you charge George under R.A. No. 9160 (Comprehensive Dangerous Drugs
Act)? (1%)
(A) Use of dangerous drug.
(B) Use and possession of dangerous drugs.
(C) Possession of dangerous drugs.
(D) Importation of dangerous drugs.
XXIII. During a military uprising aimed at ousting the duly constituted authorities and taking over the
government, General Tejero and his men forcibly took over the entire Rich Hotel which they used as
their base. They used the rooms and other facilities of the hotel, ate all the available food they
found, and detained some hotel guests.
What crime did General Tejero and his men commit? (1%)
(A) Rebellion complexed with serious illegal detention and estafa.
(B) Rebellion.
(C) Coup d'etat.
(D) Terrorism.
XXIV. Andres was convicted of frustrated homicide and was sentenced to 6 years and 1 day as
minimum, to 8 years of prision mayor as maximum. Andres appealed his conviction to the Court of
Appeals, which convicted him of attempted homicide, and sentenced him to 6 months of arresto
mayor as minimum, to4years of prision correccional as maximum.
Instead of appealing his conviction, Andres filed an application for probation with the Regional Trial
Court. Is Andres qualified to avail of the benefits of the probation law? (1%)
(A) No, because when he filed a notice of appeal with the Court of Appeals, he waived his
right under the probation law.
(B) Yes, because after his appeal, he qualified for probation as the sentence imposed on him
was less than6years.
(C) Yes, because the probation law is meant to favor the accused.
(D) No, because his previous sentence of more than 6 years disqualified him so that he can
no longer avail of probation as an alternative remedy.
XXV. Juancho owns a small piggery in Malolos, Bulacan. One Saturday afternoon, he discovered
that all his pigs had died. Suspecting that one of his neighbours had poisoned the pigs, Juancho
went home, took his rifle, went around the neighbourhood, and fired his rifle in the air while shouting,
"makakatikim sa akin ang naglason ng mga baboy ko." Barangay officials requested police
assistance and Juancho was apprehended. Juancho was charged with and convicted of the crime of
alarms and scandals. Juancho did not appeal his conviction.
Is Juancho qualified for probation? (1%)
(A) Yes, because the penalty for alarms and scandals is less than six (6) years.
(B) Yes, because Juancho did not appeal his conviction.
(C) No, because the crime of alarms and scandals carries with it a fine of P200.
(D) No, because the crime of alarms and scandals affects public order.

CIVIL LAW
October 13, 2013
8:00 A.M.-12:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains SIXTEEN (16) pages including these Instructions pages. Check the
There are TEN (10) Essay Questions numbered I to X (with subquestions), and TEN (10) Multiple
Choice Questions (MCQs) numbered I to X (with subquestions), to be answered within four (4)
hours.
given premises.
to the solution to the problem. Yon do not need to re-write or repeat the question in your
offered.
considered cheating and can disqualify you for the Bar examinations. You can use the questionnaire
for notes you may wish/need to write during the examination.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
You are a Family Court judge and before you is a Petition for the Declaration of Nullity of Marriage
(under Article 36 of the Family Code)filed by Maria against Neil. Maria claims that Neil is
psychologically incapacitated to comply with the essential obligations of marriage because Neil is a
drunkard, a womanizer, a gambler, and a mama's boy- traits that she never knew or saw when Neil
was courting her. Although summoned, Neil did not answer Maria's petition and never appeared in
court.
To support her petition, Maria presented three witnesses- herself, Dr. Elsie Chan, and Ambrosia. Dr.
Chan testified on the psychological report on Neil that she prepared. Since Neil never acknowledged
n9r responded to her invitation for interviews, her report is solely based on her interviews with Maria
and the spouses' minor children. Dr. Chan concluded that Neil is suffering from Narcissistic
Personality Disorder, an ailment that she found to be already present since Neil's early adulthood
and one that is grave and incurable. Maria testified on the specific instances when she found Neil
drunk, with another woman, or squandering the family's resources in a casino. Ambrosia, the
spouses' current household help, corroborated Maria's testimony.
On the basis of the evidence presented, will you grant the petition? (8%)
II.
A collision occurred at an intersection involving a bicycle and a taxicab. Both the bicycle rider (a
businessman then doing his morning exercise) and the taxi driver claimed that the other was at fault.
Based on the police report, the bicycle crossed the intersection first but the taxicab, crossing at a
fast clip from the bicycle's left, could not brake in time and hit the bicycle's rear wheel, toppling it and
throwing the bicycle rider into the sidewalk 5 meters away.
The bicycle rider suffered a fractured right knee, sustained when he fell on his right side on the
concrete side walk. He was hospitalized and was subsequently operated on, rendering him immobile
for 3 weeks and requiring physical rehabilitation for another 3 months. In his complaint for damages,
the rider prayed for the award ofP1,000,000 actual damages,P200,000 moral damages, P200,000
exemplary damages, P1 00,000 nominal damages and P50,000 attorney's fees.
Assuming the police report to be correct and as the lawyer for the bicycle rider, what evidence
(documentary and testimonial) and legal arguments will you present in court to justify the damages
that your client claims? (8%)
III.
Sergio is the registered owner of a 500-square meter land. His friend, Marcelo, who has long been
interested in the property, succeeded in persuading Sergio to sell it to him. On June 2, 2012, they
agreed on the purchase price of P600,000 and that Sergio would give Marcelo up to June30, 2012
within which to raise the amount. Marcelo, in a light tone usual between them, said that they should
seal their agreement through a case of Jack Daniels Black and P5,000 "pulutan" money which he
immediately handed to Sergio and which the latter accepted. The friends then sat down and drank
the first bottle from the case of bourbon.
On June 15, 2013, Sergio learned of another buyer, Roberto, who was offering P800,000 in ready
cash for the land. When Roberto confirmed that he could pay in cash as soon as Sergio could get
the documentation ready, Sergio decided to withdraw his offer to Marcelo, hoping to just explain
matters to his friend. Marcelo, however, objected when the withdrawal was communicated to him,
taking the position that they have a firm and binding agreement that Sergio cannot simply walk away
from because he has an option to buy that is duly supported by a duly accepted valuable
consideration.
(A) Does Marcelo have a cause of action against Sergio? (5%)
(B) Can Sergio claim that whatever they might have agreed upon cannot be enforced
because any agreement relating to the sale of real property must be supported by evidence
in writing and they never reduced their agreement to writing? (3%)
IV.
Anselmo is the registered owner of a land and a house that his friend Boboy occupied for a nominal
rental and on the condition that Boboy would vacate the property on demand. With Anselmo's
knowledge, Boboy introduced renovations consisting of an additional bedroom, a covered veranda,
and a concrete block fence, at his own expense.
Subsequently, Anselmo needed the property as his residence and thus asked Boboy to vacate and
turn it over to him. Boboy, despite an extension, failed to vacate the property, forcing Anselmo to
send him a written demand to vacate.
In his own written reply, Boboy signified that he was ready to leave but Anselmo must first reimburse
him the value of the improvements he introduced on the property as he is a builder in good faith.
Anselmo refused, insisting that Boboy cannot ask for reimbursement as he is a mere lessee. Boboy
responded by removing the improvements and leaving the building in its original state.
(A) Resolve Boboy's claim that as a builder in good faith, he should be reimbursed the value
of the improvements he introduced. (4%)
(B) Can Boboy be held liable for damages for removing the improvements over Anselmo's
objection? (4%)
V.
Josefa executed a deed of donation covering a one-hectare rice land in favor of her daughter,
Jennifer. The deed specifically provides that:
"For and in consideration of he love and service Jennifer has shown and given to me, I
hereby freely, voluntarily and irrevocably donate to her my one-hectare rice land covered by
TCT No. 11550, located in San Fernando, Pampanga. This donation shall take effect upon
my death."
The deed also contained Jennifer's signed acceptance, and an attached notarized declaration by
Josefa and Jennifer that the land will remain in Josefa's possession and cannot be alienated,
encumbered, sold or disposed of while Josefa is still alive.
Advise Jennifer on whether the deed is a donation inter vivos or mortis causa and explain the
reasons supporting your advice. (8%)
VI.
Lito obtained a loan of P1,000,000 from Ferdie, payable within one year. To secure payment, Lito
executed a chattel mortgage on a Toyota Avanza and a real estate mortgage on a 200-square meter
piece of property.
(A) Would it be legally significant - from the point of view of validity and enforceability - if the
loan and the mortgages were in public or private instruments? (6%)
(B) Lito's failure to pay led to the extra-judicial foreclosure of the mortgaged real property.
Within a year from foreclosure, Lito tendered a manager's check to Ferdie to redeem the
property. Ferdie refused to accept payment on the ground that he wanted payment in cash:
the check does not qualify as legal tender and does not include the interest payment. Is
Ferdie's refusal justified? (4%)
VII.
In 2005, Andres built a residential house on a lot whose only access to the national highway was a
pathway crossing Brando's property. Andres and others have been using this pathway (pathway A)
since 1980.
In 2006, Brand0 fenced off his property, thereby blocking Andres' access to the national highway.
Andres demanded that part of the fence be removed to maintain his old access route to the highway
(pathway A), but Brando refused, claiming that there was another available pathway (pathway B) for
ingress and egress to the highway. Andres countered that pathway B has defects, is circuitous, and
is extremely inconvenient to use.
To settle their dispute, Andres and Brando hired Damian, a geodetic and civil engineer, to survey
and examine the two pathways and the surrounding areas, and to determine the shortest and the
least prejudicial way through the servient estates. After the survey, the engineer concluded that
pathway B is the longer route and will need improvements and repairs, but will not significantly affect
the use of Brando's property. On the other hand, pathway A that had long been in place, is the
shorter route but would significantly affect the use of Brando's property.
In light of the engineer's findings and the circumstances of the case, resolve the parties' right of way
dispute. (6%)
VIII.
Ciriaco Realty Corporation (CRC) sold to the spouses Del a Cruz a500-square meter land (Lot A) in
Paranaque. The land now has a fair market value of Pl,200,000. CRC likewise sold to the spouses
Rodriguez, a 700-square meter land (Lot B) which is adjacent to Lot A. Lot B has a present fair
market value of P1,500,000.
The spouses Dela Cruz constructed a house on Lot B, relying on there presentation of the CRC
sales agent that it is the property they purchased. Only upon the completion of their house did the
spouses Dela Cruz discover that they had built on Lot B owned by the spouses Rodriguez, not on
Lot A that they purchased. They spent P 1 000,000 for the house.
As their lawyer, advise the spouses Dela Cruz on their rights and obligations under the given
circumstances, and the recourses and options open to them to protect their interests. (8%)
IX.
Rica petitioned for the annulment of her ten-year old marriage to Richard. Richard hired Atty. Cruz to
represent him in the proceedings. In payment for Atty. Cruz's acceptance and legal fees, Richard
conveyed to Atty. Cruz a parcel of land in Taguig that he recently purchased with his lotto winnings.
The transfer documents were duly signed and Atty. Cruz immediately took possession by fencing off
the property's entire perimeter.
Desperately needing money to pay for his mounting legal fees and his other needs and despite the
transfer to Atty. Cruz, Richard offered the same parcel of land for sale to the spouses Garcia. After
inspection of the land, the spouses considered it a good investment and purchased it from Richard.
Immediately after the sale, the spouses Garcia commenced the construction of a three-story building
over the land, but they were prevented from doing this by Atty. Cruz who claimed he has a better
right in light of the prior conveyance in his favor.
Is Atty. Cruz's claim correct? (8%)
X.
Manuel was born on 12 March 1940 in a 1 000-square meter property where he grew up helping his
father, Michael, cultivate the land. Michael has lived on the property since the land was opened for
settlement at about the time of the Commonwealth government in 193 5, but for some reason never
secured any title to the property other than a tax declaration in his name. He has held the property
through the years in the concept of an owner and his stay was uncontested by others. He has also
conscientiously and continuously paid the realty taxes on the land.
Michael died in 2000 and Manuel - as Michaels only son and heir -now wants to secure and register
title to the land in his own name. He consults you for legal advice as he wants to perfect his title to
the land and secure its registration in his name.
(A) What are the laws that you need to consider in advising Manuel on how he can perfect
his title and register the land in his name? Explain the relevance of these laws to your
projected course of action. (4%)
(B) What do you have to prove to secure Manuel's objectives and what documentation are
necessary? (4%)
I. Armand died intestate. His full-blood brothers, Bobby and Conrad, and half-blood brothers, Danny,
Edward and Floro, all predeceased him. The following are the surviving relatives:
1. Benny and Bonnie, legitimate children of Bobby;
2. Cesar, legitimate child of Conrad;
3. Dante, illegitimate child of Danny;
4. Ernie, adopted child of Edward; and
5. Felix, grandson of Floro.
The net value of Armand's estate is Pl,200,000.
I. (1) How much do Benny and Bonnie stand to inherit by right of representation? (1%)
(A) P200,000
(B) P300,000
(C) P400,000
(D) P150,000
I. (2) How much is Dante's share in the net estate? (1%)
(A) P150,000.
(B) P200,000.
(C) P300,000.
(D) P400,000.
I. (3) How much is Ernie's share in the net estate . (1%)
(A) P 0.
(B) P400,000.
(C) P150,000.
(D) P200,000.
I. (4) How much is Felix's share in the net estate? (1%)
(A) P400,000.
(B) P150,000.
(C) P300,000.
(D) P0.
II. A, B, C and D are the solidary debtors of X for P40,000. X released D from the payment of his
share of PI 0,000. When the obligation became due and demandable, C turned out to be insolvent.
Should the share of insolvent debtor C be divided only between the two other remaining debtors, A
and B? (1%)
(A) Yes. Remission of D's share carries with it total extinguishment of his obligation to the
benefit of the solidary debtors.
(B) Yes. The Civil Code recognizes remission as a mode of extinguishing an obligation. This
clearly applies to D.
(C) No. The rule is that gratuitous acts should be restrictively construed, allowing only the
least transmission of rights.

(D) No, as the release of the share of one debtor would then increase the burden of the
other debtors without their consent.
III. Amador obtained a loan of P300,000 from Basilio payable on March25, 2012. As security for the
payment of his loan, Amador constituted a mortgage on his residential house and lot in Basilio's
favor. Cacho, a good friend of Amador, guaranteed and obligated himself to pay Basilio, in case
Amador fails to pay his loan at maturity.
III. (1) If Amador fails to pay Basilio his loan on March 25, 2012, can Basilio compel Cacho to
pay? (1%)
(A) No, Basilio cannot compel Cacho to pay because as guarantor, Cacho can
invoke the principle of excussion, i.e., all the assets of Basilio must first be
exhausted.
(B) No, Basilio cannot compel Cacho to pay because Basilio has not exhausted the
available remedies against Amador.
(C) Yes, Basilio can compel Cacho to pay because the nature of Cacho's
undertaking indicates that he has bound himself solidarily with Amador.
(D) Yes, Basilio can compel Cacho who bound himself to unconditionally pay in case
Amador fails to pay; thus the benefit of excussion will not apply.
III. (2) If Amador sells his residential house and lot to Diego, can Basilio foreclose the real
estate mortgage? (1%)
(A) Yes, Basilio can foreclose the real estate mortgage because real estate
mortgage creates a real right that attaches to the property.
(B) Yes, Basilio can foreclose the real estate mortgage. It is binding upon Diego as
the mortgage is embodied in a public instrument.
(C) No, Basilio cannot foreclose the real estate mortgage. The sale confers
ownership on the buyer, Diego, who must therefore consent.
(D) No, Basilio cannot foreclose the real estate mortgage. To deprive the new owner
of ownership and possession is unjustand inequitable.
IV. Cruz lent Jose his car until Jose finished his Bar exams. Soon after Cruz delivered the car, Jose
brought it to Mitsubishi Cubao for maintenance check up and incurred costs of P8,000. Seeing the
car's peeling and faded paint, Jose also had the car repainted for P10,000. Answer the two
questions below based on these common facts.
IV. (1) After the bar exams, Cruz asked for the return of his car. Jose said he would return it
as soon as Cruz has reimbursed him for the car maintenance and repainting costs of P
18,000.
Is Jose's refusal justified? (1%)
(A) No, Jose's refusal is not justified. In this kind of contract, Jose is obliged to pay
for all the expenses incurred for the preservation of the thing loaned.
(B) Yes, Jose's refusal is justified. He is obliged to pay forall the ordinary and
extraordinary expenses, but subject to reimbursement from Cruz.
(C) Yes, Jose's refusal is justified. The principle of unjust enrichment warrants the
reimbursement of Jose's expenses.
(D) No, Jose's refusal is not justified. The expenses he incurred are useful for the
preservation of the thing loaned. It is Jose's obligation to shoulder these useful
expenses.
IV. (2) During the bar exam month, Jose lent the car to his girlfriend, Jolie, who parked the
car at the Mall of Asia's open parking lot, with the ignition key inside the car. Car thieves
broke into and took the car.
Is Jose liable to Cruz for the loss of the car due to Jolie's negligence? (1%)
(A) No, Jose is not liable to Cruz as the loss was not due to his fault or negligence.
(B) No, Jose is not liable to Cruz. In the absence of any prohibition, Jose could lend
the car to Jolie. Since the loss was due to force majeure, neither Jose nor Jolie is
liable.
(C) Yes, Jose is liable to Cruz. Since Jose lent the car to Jolie without Cruz's
consent, Jose must bear the consequent loss of the car.
(D) Yes, Jose is liable to Cruz. The contract between them is personal in nature.
Jose can neither lend nor lease the car to a third person.
V. In 2005, L, M, N, 0 and P formed a partnership. L, M and N were capitalist partners who
contributed P500,000 each, while 0, a limited partner, contributed P1 ,000,000. P joined as an
industrial partner, contributing only his services. The Articles of Partnership, registered with the
Securities and Exchange Commission, designated L and 0 as managing partners; L was liable only
to the extent of his capital contribution; and P was not liable for losses.
In 2006, the partnership earned a net profit of P800,000. In the same year, P engaged in a different
business with the consent of all the partners. However, in 2007, the partnership incurred a net loss
of P500,000. In 2008,the partners dissolved the partnership. The proceeds of the sale of partnership
assets were insufficient to settle its obligation. After liquidation, the partnership had an unpaid
liability ofP300,000.
V. (l) Assuming that the just and equitable share of the industrial partner, P, in the profit in
2006 amounted to P1 00,000, how much is the share of 0, a limited partner, in the P800,000
net profit? (1%)

(A) P160,000.
(B) P175,000.
(C) P280,000.
(D) P200,000.
V. (2) In 2007, how much is the share of 0, a limited partner, in the net loss of P500,000?
(1%)
(A) P 0.
(B) P1 00,000.
(C) P125,000.
(D) P200,000.
V. (3) Can the partnership creditors hold L, 0 and Pliable after all the assets of the
partnership are exhausted? (1%)
(A) Yes. The stipulation exempting P from losses is valid only among the partners. L
is liable because the agreement limiting his liability to his capital contribution is not
valid insofar as the creditors are concerned. Having taken part in the management of
the partnership, 0 is liable as capitalist partner.
(B) No. P is not liable because there is a valid stipulation exempting him from losses.
Since the other partners allowed him to engage in an outside business activity, the
stipulation absolving P from liability is valid. For 0, it is basic that a limited partner is
liable only up to the extent of his capital contribution.
(C) Yes. The stipulations exempting P and L from losses are not binding upon the
creditors. 0 is likewise liable because the partnership was not formed in accordance
with the requirements of a limited partnership.
(D) No. The Civil Code allows the partners to stipulate that a partner shall not be
liable for losses. The registration of the Articles of Partnership embodying such
stipulations serves as constructive notice to the partnership creditors.(E) None of the
above is completely accurate.
VI. Gary is a tobacco trader and also a lending investor. He sold tobacco leaves to Homer for
delivery within a month, although the period for delivery was not guaranteed. Despite Gary's efforts
to deliver on time, transportation problems and government red tape hindered his efforts and he
could only deliver after 30 days. Homer refused to accept the late delivery and to pay on the ground
that the agreed term had not been complied with.
As lending investor, Gary granted a Pl,000,000 loan to Isaac to be paid within two years from
execution of the contract. As security for the loan, Isaac promised to deliver to Gary his Toyota
Innova within seven (7) days, but Isaac failed to do so. Gary was thus compelled to demand
payment for the loan before the end of the agreed two-year term.
VI. (l) Was Homer justified in refusing to accept the tobacco leaves? (1%)
(A) Yes. Homer was justified in refusing to accept the tobacco leaves. The delivery
was to be made within a month. Gary's promise of delivery on a "best effort" basis
made the delivery uncertain. The term, therefore, was ambiguous.
(B) No. Homer was not justified in refusing to accept the tobacco leaves. He
consented to the terms and conditions of the sale and must abide by it. Obligations
arising from contract have the force of law between the contracting parties.
(C) Yes. Homer was justified in his refusal to accept the delivery. The contract
contemplates an obligation with a term. Since the delivery was made after 30 days,
contrary to the terms agreed upon, Gary could not insist that Homer accept the
tobacco leaves.
(D) No. Homer was not justified in refusing to accept the tobacco leaves. There was
no term in the contract but a mixed condition. The fulfillment of the condition did not
depend purely on Gary's will but on other factors, e.g., the shipping company and the
government. Homer should comply with his obligation.
VI. (2) Can Gary compel Isaac to pay his loan even before the end of the two-year period?
(1%)
(A) Yes, Gary can compel Isaac to immediately pay the loan. Non-compliance with
the promised guaranty or security renders the obligation immediately demandable.
Isaac lost his right to make use of the period.
(B) Yes, Gary can compel Isaac to immediately pay the loan. The delivery of the
Toyota Innova is a condition for the loan. Isaac's failure to deliver the car violated the
condition upon which the loan was granted. It is but fair for Gary to demand
immediate payment.
(C) No, Gary cannot compel Isaac to immediately pay the loan. The delivery of the
car as security for the loan is an accessory contract; the principal contract is still the
P 1,000,000 loan. Thus, Isaac can still make use of the period.
(D) No, Gary cannot compel Isaac to immediately pay the loan. Equity dictates that
Gary should have granted a reasonable extension of time for Isaac to deliver his
Toyota Innova. It would be unfair and burdensome for Isaac to pay the P1,000,000
simply because the promised security was not delivered.
VII.
Lito was a commercial pilot who flew for Pacific-Micronesian Air. In 1998, he was the co-pilot of the
airline's Flight MA916 that mysteriously disappeared two hours after take-off from Agana, Guam,
presumably over the Pacific Ocean. No trace of the plane and its 105 passengers and crew was
ever found despite diligent search; Lito himself was never heard of again. Lito left behind his wife,
Lita, and their two children.
In 2008, Lita met and and married Jaime. They now have a child of their own.
While on a tour with her former high school classmates in a remote province of China in 2010, Lita
was surprised to see Lito or somebody who looked exactly like him, but she was sure it was Lito
because of the extreme surprise that registered in his face when he also saw her. Shocked, she
immediately fled to her hotel and post haste returned to the country the next day. Lita now comes to
you for legal advice. She asks you the following questions:
VII. (l) If Lito is alive, what is the status of his marriage to Lita? (1%)
(A) The marriage subsists because the marital bond has not been terminated by
death.
(B) The marriage was terminated when Lita married Jaime.
(C) The marriage subsists because Lita's marriage to Jaime is void.
(D) The marriage is terminated because Lito is presumed dead after his plane has
been missing for more than 4 years.
(E) The marriage can be formally declared terminated if Lito would not resurface.
VII. (2) If Lito is alive, what is the status of Lita's marriage to Jaime? (1%)
(A) The marriage is valid because Lita's marriage to Lito was terminated upon Lito's
disappearance for more than seven years.
(B) The marriage is valid. After an absence of more than 10 years, Lito is already
presumed dead for all purposes.
(C) The marriage is void. Lito's mere absence, however lengthy, is insufficient to
authorize Lita to contract a subsequent marriage.
(D) The marriage is void. If Lito is indeed alive, his marriage to Lita was never
dissolved and they can resume their marital relations at any time.
VIII.
Which of the following actions or defenses are meritorious: (1%)
(A) An action for recovery of downpayment paid under a rescinded oral sale of real property.
(B) A defense in an action for ejectment that the lessor verbally promised to extend or renew
the lease.
(C) An action for payment of sum of money filed against one who orally promised to answer
another's debt in case the latter defaults.
(D) A defense in an action for damages that the debtor has sufficient, but unliquidated assets
to satisfy the credit acquired when it becomes due.
IX.
Betty entrusted to her agent, Aida, several pieces of jewelry to be sold on commission with the
express obligation to turn over to Betty the proceeds of the sale, or to return the jewelries if not sold
in a month's time. Instead of selling the jewelries, Aida pawned them with the Tambunting
Pawnshop, and used the money for herself. Aida failed to redeem the pawned jewelries and after a
month, Betty discovered what Aida had done. Betty brought criminal charges which resulted in
Aida's conviction for estafa.
Betty thereafter filed an action against Tambunting Pawnshop for the recovery of the jewelries.
Tambunting raised the defense of ownership, additionally arguing that it is duly licensed to engage in
the pawnshop and lending business, and that it accepted the mortgage of the jewelry in good faith
and in the regular course of its business.
If you were the judge, how will you decide the case? (1%)
(A) I will rule in favor of Betty. My ruling is based on the Civil Code provision that one who
has lost any movable or has been unlawfully deprived thereof may recover it from the person
in possession of the same. Tam bunting's claim of good faith is inconsequential.
(B) I will rule in favor of Betty. Tambunting's claim of good faith pales into insignificance in
light of the unlawful deprivation of the jewelries. However, equity dictates that Tambunting
must be reimbursed for the pawn value of the jewelries.
(C) I will rule in favor of Tambunting. Its good faith takes precedence over the right of Betty
to recover the jewelries.
(D) I will rule in favor of Tambunting. Good faith is always presumed. Tambunting's lawful
acquisition in the ordinary course of business coupled with good faith gives it legal right over
the jewelries.
X.
Arlene owns a row of apartment houses in Kamuning, Quezon City. She agreed to lease Apartment
No. 1 to Janet for a period of 18 months at the rate of P10,000 per month. The lease was not
covered by any contract. Janet promptly gave Arlene two (2) months deposit and 18 checks
covering the rental payment for 18 months. This show of good faith prompted Arlene to promise
Janet that should Arlene decide to sell the property, she would give Janet the right of first refusal.
X. (1) Not long after Janet moved in, she received news that her application for a Master of
Laws scholarship at King's College in London had been approved. Since her acceptance of
the scholarship entailed a transfer of residence, Janet asked Arlene to return the advance
rental payments she made. Arlene refused, prompting Janet to file an action to recover the
payments. Arlene filed a motion to dismiss, claiming that the lease on which the action is
based, is unenforceable.
If you were the judge, would you grant Arlene's motion? (1%)
(A) Yes, I will grant the motion because the lease contract between Arlene and Janet
was not in writing, hence, Janet may not enforce any right arising from the same
contract.
(B) No, I will not grant the motion because to allow Arlene to retain the advance
payments would amount to unjust enrichment.
(C) Yes, I will grant the motion because the action for recovery is premature; Janet
should first secure a judicial rescission of the contract of lease.
(D) No. I will not grant the motion because the cause of action does not seek to
enforce any right under the contract of lease.
X. (2)Assume that Janet decided not to accept the scholarship and continued leasing
Apartment No. 1. Midway through the lease period, Arlene decided to sell Apartment No. 1 to
Jun in breach of her promise to Janet to grant her the right of first refusal. Thus, Janet filed
an action seeking the recognition of her right of first refusal, the payment of damages for the
violation of this right, and the rescission of the sale between Arlene and Jun.
Is Janet's action meritorious? (1%)
(A) Yes, under the Civil Code, a promise to buy and sell a determinate thing is
reciprocally demandable.
(B) No, the promise to buy and sell a determinate thing was not supported by a
consideration.
(C) Yes, Janet's right of first refusal was clearly violated when the property was not
offered for sale to her before it was sold to Jun.
(D) No, a right of first refusal involves an interest over real property that must be
embodied in a written contract to be enforceable.
TAXATION LAW
October 13, 2013
2:00P.M.- 6:00P.M.
INSTRUCTIONS
1. This Questionnaire contains THIRTEEN (13) pages including these Instructions pages. Check the
There are TWELVE (12) Essay Questions numbered I to XII, and TWENTY (20) Multiple Choice
Questions(MCQs) numbered I to XX, to be answered within four (4) hours.
every sheet in your Notebook. Note well the allocated percentage points for each number, question,
or sub-question. In your answers, use the numbering system in the questionnaire.
given premises.
to the solution to the problem. You do not need to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter (A, B, C, D, or E)
corresponding to your chosen answer. The MCQ answers should begin in the page following the
last page of your essay answers.
There is only one correct answer to every MCQ; choose the BEST answer from amon2 the offered
choices. Note that .some MCQs may need careful analysis both of the questions and the choices
offered.
Notebook that can serve as identifying mark/s (such as names that are not in the given questions,
prayers, or private notes to the Examiner).

Writing, leaving or making any distinguishing or identifying mark in the exam Notebook is considered
cheating and can disqualify you for the Bar examinations.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
In its final adjustment return for the 2010 taxable year, ABC Corp. had excess tax credits arising
from its over-withholding of income payments. It opted to carry over the excess tax credits to the
following year. Subsequently, ABC Corp. changed its mind and applied for a refund of the excess tax
credits.
Will the claim for refund prosper? (6%)
II.
A group of philanthropists organized a non-stock, non-profit hospital for charitable purposes to
provide medical services to the poor. The hospital also accepted paying patients although none of its
income accrued to any private individual; all income were plowed back for the hospital's use and not
more than 30% of its funds were used for administrative purposes.
Is the hospital subject to tax on its income? If it is, at what rate? (6%)
III.
ABC Corporation is registered as a holding company and has an office in the City of Makati. It has
no actual business operations. It invested in another company and its earnings are limited to
dividends from this investment, interests on its bank deposits, and foreign exchange gains from its
foreign currency account. The City of Makati assessed ABC Corporation as a contractor or one that
sells services for a fee. Is the City of Makati correct? (6%)
IV.
Atty. Gambino is a partner in a general professional partnership. The partnership computes its gross
revenues, claims deductions allowed under the Tax Code, and distributes the net income to the
partners, including Atty. Gambino, in accordance with its articles of partnership.
In filing his own income tax return, Atty. Gambino claimed deductions that the partnership did not
claim, such as purchase of law books, entertainment expenses, car insurance and car depreciation.
The BIR disallowed the deductions.

Was the BIR correct? (6%)
V.
Mr. Agustin, 75 years old and suffering from an incurable disease, decided to sell for valuable and
sufficient consideration a house and lot to his son. He died one year later.
In the settlement of Mr. Agustin's estate, the BIR argued that the house and lot were transferred in
contemplation of death and should therefore form part of the gross estate for estate tax purposes.
Is the BIR correct? (7%)
VI.
On October 15, 2005, ABC Corp. imported 1,000 kilos of steel ingots and paid customs duties and
VAT to the Bureau of Customs on the importation. On February 17, 2009, the Bureau of Customs,
citing provisions of the Tariff and Customs Code on post-audit, investigated and assessed ABC
Corp. for deficiency customs duties and VAT.
Is the Bureau of Customs correct? (7%)
VII.
XYZ Law Offices, a law partnership in the Philippines and a VAT-registered taxpayer, received a
query by e-mail from Gainsburg Corporation, a corporation organized under the laws of Delaware,
but the e-mail came from California where Gainsburg has an office. Gainsburg has no office in the
Philippines and does no business in the Philippines.
XYZ Law Offices rendered its opinion on the query and billed Gainsburg US$1,000 for the opinion.
Gainsburg remitted its payment through Citibank which converted the remitted US$1 ,000 to pesos
and deposited the converted amount in the XYZ Law Offices account.
What are the tax implications of the payment to XYZ Law Offices in terms of VAT and income taxes?
(7%)
VIII.
Mr. Amado leased a piece of land owned by the Municipality of Pinagsabitan and built a warehouse
on the property for his business operations. The Municipal Assessor assessed Mr. Amado for real
property taxes on the land and the warehouse. Mr. Amado objected to the assessment, contending
that he should not be asked to pay realty taxes on the land since it is municipal property.
Was the assessment proper? (5%)
IX.
In the settlement of the estate of Mr. Barbera who died intestate, his wife renounced her inheritance
and her share of the conjugal property in favor of their children. The BIR determined that there was
a taxable gift and thus assessed Mrs. Barbera as a donor.
Was the BIR correct? (7%)
X.
In 2010, pursuant to a Letter of Authority (LA) issued by the Regional Director, Mr. Abcede was
assessed deficiency income taxes by the BIR for the year 2009. He paid the deficiency. In 2011, Mr.
Abcede received another LA for the same year 2009, this time from the National Investigation
Division, on the ground that Mr. Abcede's 2009 return was fraudulent.
Mr. Abcede contested the LA on the ground that he can only be investigated once in a taxable year.
Decide. (7%)
XI.
In 2000, Mr. Belen bought a residential house and lot for P1,000,000. He used the property as his
and his family's principal residence. It is now year 2013 and he is thinking of selling the property to
buy a new one. He seeks your advice on how much income tax he would pay if he sells the property.
The total zonal value of the property is P5,000,000 and the fair market value per the tax declaration
is P2,500,000. He intends to sell it forP6,000,000.
What material considerations will you take into account in computing the income tax? Please explain
the legal relevance of each of these considerations. (7%)
XII.
You are the retained tax counsel of ABC Corp. Your client informed you that they have been directly
approached with a proposal by a BIR insider (i.e., a middle rank BIR official) on the tax matter they
have referred to you for handling. The BIR insider's proposal is to settle the matter by significantly
reducing the assessment, but he will get 50% of the savings arising from the reduced assessment.
What tax, criminal and ethical considerations will you take into account in giving your advice?
Explain the relevance of each of these considerations. (9%)
I. ABC Corp. was dissolved and liquidating dividends were declared and paid to the stockholders.
What tax consequence follows? (1%)
(A) ABC Corp. should deduct a final tax of 10% from the dividends.
(B) The stockholders should declare their gain from their investment and pay income tax at
the ordinary rates.
(C) The dividends are exempt from tax.
(D) ABC Corp. should withhold a 10% creditable tax.

II. MGC Corp. secured an income tax holiday for 5 years as a pioneer industry. On the fourth year of
the tax holiday, MGC Corp. declared and paid cash dividends to its stockholders, all of whom are
individuals.
Are the dividends taxable? (1%)
(A) The dividends are taxable; the tax exemption of MGC Corp. does not extend to its
stockholders.
(B) The dividends are tax exempt because of MGC Corp.'s income tax holiday.
(C) The dividends are taxable if they exceed 50% of MGC Corp.'s retained earnings.
(D) The dividends are exempt if paid before the end of MGC Corp.'s fiscal year.
III. Mr. Alas sells shoes in Makati through a retail store. He pays the VAT on his gross sales to the
BIR and the municipal license tax based on the same gross sales to the City of Makati. He comes to
you for advice because he thinks he is being subjected to double taxation.
What advice will you give him? (1%)
(A) Yes, there is double taxation and it is oppressive.
(B) The City of Makati does not have this power.
(C) Yes, there is double taxation and this is illegal m the Philippines.
(D) Double taxation is allowed where one tax is imposed by the national government and the
other by the local government.
IV. Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was
thought to be sufficient to drive many cigarette companies out of business, and was questioned in
court by a cigarette company that would go out of business because it would not be able to pay the
increased tax.
The cigarette company is __________ (1%)
(A) wrong because taxes are the lifeblood of the government
(B) wrong because the law recognizes that the power to tax is the power to destroy
(C) correct because no government can deprive a person of his livelihood
(D) correct because Congress, in this case, exceeded its power to tax
V. Mr. Alvarez is in the retail business. He received a deficiency tax assessment from the BIR
containing only the computation of the deficiency tax and the penalties, without any explanation of
the factual and legal bases for the assessment.

Is the assessment valid? (1%)
(A) The assessment is valid; all that Mr. Alvarez has to know is the amount of the tax.
(B) The assessment is invalid; the law requires a statement of the facts and the law upon
which the assessment is based.
(C) The assessment is valid but Mr. Alvarez can still contest it.
(D) The assessment is invalid because Mr. Alvarez has no way to determine if the
computation is erroneous.
VI. In 2010, Mr. Platon sent his sister Helen $1 ,000 via a telegraphic transfer through the Bank of
PI. The bank's remittance clerk made a mistake and credited Helen with $1,000,000 which she
promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Helen
refused. The BIR entered the picture and investigated Helen.
Would the BIR be correct if it determines that Helen earned taxable income under these facts? (1%)
(A) No, she had no income because she had no right to the mistakenly credited funds.
(B) Yes, income is income regardless of the source.
(C) No, it was not her fault that the funds in excess of $1,000 were credited to her.
(D) No, the funds in excess of$1,000 were in effect donated to her.
VII. The municipality of San Isidro passed an ordinance imposing a tax on installation managers. At
that time, there was only one installation manager in the municipality; thus, only he would be liable
for the tax.
Is the law constitutional? (1%)
(A) It is unconstitutional because it clearly discriminates against this person.
(B) It is unconstitutional for lack of legal basis.
(C) It is constitutional as it applies to all persons in that class.
(D) It is constitutional because the power to tax is the power to destroy.
VIII. XYZ Corporation manufactures glass panels and is almost at the point of insolvency. It has no
more cash and all it has are unsold glass panels. It received an assessment from the BIR for
deficiency income taxes. It wants to pay but due to lack of cash, it seeks permission to pay in kind
with glass panels.
Should the BIR grant the requested permission? (1%)

(A) It should grant permission to make payment convenient to taxpayers.
(B) It should not grant permission because a tax is generally a pecuniary burden.
(C) It should grant permission; otherwise, XYZ Corporation would not be able to pay.
(D) It should not grant permission because the government does not have the storage
facilities for glass panels.
IX. Prior to the VAT law, sales of cars were subject to a sales tax but the tax applied only to the
original or the first sale; the second and subsequent sales were not subject to tax.
Deltoid Motors, Inc. (Deltoid) hit on the idea of setting up a wholly-owned subsidiary, Gonmad
Motors, Inc. (Gonmad), and of selling its assembled cars to Gonmad at a low price so it would pay a
lower tax on the first sale. Gonmad would then sell the cars to the public at a higher price without
paying any sales tax on this subsequent sale.
Characterize the arrangement. (1%)
A. The plan is a legitimate exercise of tax planning and merely takes advantage of a
loophole in the law.
B. The plan is legal because the government collects taxes anyway.
C. The plan is improper; the veil of corporate fiction can be pierced so that the second sale
will be considered the taxable sale.
D. The government must respect Gonmad's separate juridical personality and Deltoid's
taxable sale to it.
X. PRT Corp. purchased a residential house and lot with a swimming pool in an upscale subdivision
and required the company president to stay there without paying rent; it reasoned out that the
company president must maintain a certain image and be able to entertain guests at the house to
promote the company's business. The company president declared that because they are childless,
he and his wife could very well live in a smaller house.
Was there a taxable fringe benefit? (1%)
(A) There was no taxable fringe benefit since it was for the convenience of the employer and
was necessary for its business.
(B) There was a taxable fringe benefit since the stay at the house was for free.
(C) There was a taxable fringe benefit because the house was very luxurious.
(D) There was no taxable fringe benefit because the company president was only required to
stay there and did not demand free housing.

XI. Taxpayer A was required by the BIR to sign and submit a waiver of the statute of limitations on
the assessment period, to give the BIR more time to complete its investigation. The BIR accepted
the waiver but failed to indicate the date of its acceptance.
What is the legal status of the waiver? (1%)
(A) The waiver is valid because the date of acceptance is immaterial and unimportant.
(B) The waiver is invalid; the taxpayer cannot be required to waive the statute of limitations.
(C) The waiver is invalid; the date of acceptance is crucial in counting the start of the period
of suspension of the prescriptive period.
(D) The waiver is valid, having been accepted by the BIR.
XII. Taxpayer Andy received on January 3, 2010 a preliminary assessment notice (PAN) from the
BIR, stating that he had fifteen (15) days from its receipt to comment or to file a protest. Eight (8)
days later (or on January11, 2010), before he could comment or file a protest, Andy received the
final assessment notice (FAN).
Decide on the validity of the FAN. (1%)
(A) The FAN is invalid; Andy was not given the chance to respond to the PAN, in violation of
his due process rights.
(B) The FAN is invalid for being premature.
(C) The FAN is valid since it was issued before the right to assess prescribed.
(D) The FAN is valid. There is no legal requirement that the FAN should await the protest to
the PAN because protest to the PAN is not mandatory.
XIII. MSI Corp. imports orange and lemon concentrates as raw materials for the fruit drinks it sells
locally. The Bureau of Customs (BOC) imposed a 1% duty rate on the concentrates. Subsequently,
the BOC changed its position and held that the concentrates should be taxed at 7% duty rate. MSI
disagreed with the ruling and questioned it in the CTA which upheld MSI's position. The
Commissioner of Customs appealed to the CTA en bane without filing a motion for reconsideration.
Resolve the appeal. (1%)
(A) The appeal should be dismissed because a motion for reconsideration is mandatory.
(B) The appeal should be dismissed for having been filed out of time.
(C) The appeal should be given due course since a motion for reconsideration is a useless
exercise.
(D) The appeal should be upheld to be fair to the government which needs taxes.
XIV. The spouses Jun and Elvira Sandoval purchased a piece of land for P5,000,000 and included
their two (2) minor children as co-purchasers in the Deed of Absolute Sale. The Commissioner of
Internal Revenue (CIR) ruled that there was an implied donation and assessed donors' taxes
against the spouses.
Rule on the CIR's action. (1%)
(A) The CIR is wrong; a donation must be express.
(B) The CIR is wrong; financial capacity is not a requirement for a valid sale.
(C) The CIR is correct; the amount involved is huge and ultimately ends up with the children.
(D) The CIR is correct; there was animus donandi since the children had no financial
capacity to be co-purchasers.
XV. Pheleco is a power generation and distribution company operating mainly from the City of
Taguig. It owns electric poles which it also rents out to other companies that use poles such as
telephone and cable companies. Taguig passed an ordinance imposing a fee equivalent to 1% of the
annual rental for these poles. Pheleco questioned 'the legality of the ordinance on the ground that it
imposes an income tax which local government units (LGUs) are prohibited from imposing.
Rule on the validity of the ordinance. (1%)
(A) The ordinance is void; the fee is based on rental income and is therefore a tax on
income.
(B) The ordinance is valid as a legitimate exercise of police power to regulate electric poles.
(C) The ordinance is void; 1% of annual rental is excessive and oppressive.
(D) The ordinance is valid; an LGU may impose a tax on income.
XVI. Aleta sued Boboy for breach of promise to marry. Boboy lost the case and duly paid the court's
award that included, among others, Pl00,000 as moral damages for the mental anguish Aleta
suffered.
Did Aleta earn a taxable income? (1%)
(A) She had a taxable income of P100,000 since income is income from whatever source.
(B) She had no taxable income because it was a donation.
(C) She had taxable income since she made a profit.
(D) She had no taxable income since moral damages are compensatory.
XVII. Mr. Mayuga donated his residential house and lot to his son and duly paid the donor's tax. In
the Deed of Donation, Mr. Mayuga expressly reserved for himself the usufruct over the property for
as long as he lived.
Describe the donated property from the taxation perspective. (1%)
(A) The property will form part of Mr. Mayuga's gross estate when he dies.
(B) The property will not fom1 part of Mr. Mayuga's gross estate when he dies because he
paid the donor's tax.
(C) The property will form part of Mr. Mayuga's gross estate because he died soon after the
donation.
(D) The property will not form part of Mr. Mayuga's gross estate because it is no longer his.
XVIII. Mr. Z made an importation which he declared at the Bureau of Customs (BOC) as "Used
Truck Replacement Parts". Upon investigation, the container vans contained 15 units of Porsche
and Ferrari cars.
Characterize Mr. Z's action. (1%)
(A) Mr. Z committed smuggling.
(B) Mr. Z did not commit smuggling because he submitted his shipment to BOC examination.
(C) Mr. Z only made a misdeclaration, but did not commit smuggling.
(D) Mr. Z did not commit smuggling because the shipment has not left the customs area.
XIX. Mr. A was preparing his income tax return and had some doubt on whether a commission he
earned should be declared for the current year or for the succeeding year. He sought the opinion of
his lawyer who advised him to report the commission in the succeeding year. He heeded his
lawyer's advice and reported the commission in the succeeding year. The lawyer's advice turned out
to be wrong; in Mr. A's petition against the BIR assessment, the court ruled against Mr. A.
Is Mr. A guilty of fraud? (1%)
(A) Mr. A is not guilty of fraud as he simply followed the advice of his lawyer.
(B) Mr. A is guilty of fraud; he deliberately did not report the commission in the current year
when he should have done so.
(C) Mr. A's lawyer should pay the tax for giving the wrong advice.
(D) Mr. A is guilty for failing to consult his accountant.
XX. The BIR, through the Commissioner, instituted a system requiring taxpayers to submit to the
BIR a summary list of their sales and purchases during the year, indicating the name of the seller or
the buyer and the amount. Based on these lists, the BIR discovered that in 2004 ABC Corp.
purchased from XYZ Corp. goods worthP5,000,000. XYZ Corp. did not declare these for income tax
purposes as its reported gross sales for 2004was only Pl,000,000.
Which of the following defenses may XYZ Corp. interpose in an assessment against it by the BIR?
(1%)
(A) The BIR has no authority to obtain third party information to assess taxpayers.
(B) The third party information is inadmissible as hearsay evidence.
(C) The system of requiring taxpayers to submit third party information is illegal for violating
the right to privacy.
(D) None of the above.

LABOR LAW
October 6, 2013
2:00-6:00 P.M.
INSTRUCTIONS
1. This Questionnaire contains SEVENTEEN (17) pages including these Instructions pages. Check
the number of pages and the page numbers at the upper right band corner of each page of this
There are TEN (10) Essay Questions numbered I to X (with subquestions), and EIGHTEEN (18)
Multiple Choice Questions (MCQs) numbered to XVIII (with subquestions), to be answered within
four (4) hours.
portion contains questions worth20%.
the same order the questions are posed. Write your answers only on the front, not the back, page of

given premises.
offered.
Examination Notebook that can serve as identifying mark/s (such as names that are not in the given
questions, prayers, or private notes to the Examiner).
HAND INYOUR NOTEBOOK WITH THISQUESTIONNAIRE
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
Jose and Erica, former sweethearts, both worked as sales representatives for Magna, a
multinational firm engaged in the manufacture and sale of pharmaceutical products. Although the
couple had already broken off their relationship, Jose continued to have special feelings for Erica.
One afternoon, Jose chanced upon Erica riding in the car of Paolo, a co-employee and Erica's
ardent suitor; the two were on their way back to the office from a sales call on Silver Drug, a major
drug retailer. In a fit of extreme jealousy, Jose rammed Paolo's car, causing severe injuries to Paolo
and Erica. Jose's flare up also caused heavy damage to the two company-owned cars they were
driving.
(A) As lawyer for Magna, advise the company on whether just and valid grounds exist to
dismiss Jose. (4%)
(B) Assuming this time that Magna dismissed Jose from employment for cause and you are
the lawyer of Jose, how would you argue the position that Jose's dismissal was illegal? (4%)
II.
Gamma Company pays its regular employees P350.00 a day, and houses them in a dormitory inside
its factory compound in Manila. Gamma Company also provides them with three full meals a day.
In the course of a routine inspection, a Department of Labor and Employment (DOLE) Inspector
noted that the workers' pay is below the prescribed minimum wage of P426.00 plus P30.00
allowance, and thus required Gamma Company to pay wage differentials.
Gamma Company denies any liability, explaining that after the market value of the companyprovided board and lodging are added to the employees' P350 cash daily wage, the employees'
effective daily rate would be way above the minimum pay required by law. The company counsel
further points out that the employees are aware that their food and lodging form part of their salary,
and have long accepted the arrangement.
Is the company's position legally correct?(8%)
III.
Inter-Garments Co. manufactures garments for export and requires its employees to render
overtime work ranging from two to three hours a day to meet its clients' deadlines. Since 2009, it has
been paying its employees on overtime an additional 35% of their hourly rate for work rendered in
excess of their regular eight working hours.
Due to the slowdown of its export business in 2012, Inter-Garments had to reduce its overtime work;
at the same time, it adjusted the overtime rates so that those who worked overtime were only paid
an additional 25%instead of the previous 35%. To replace the workers' overtime rate loss, the
company granted a one-time 5% across-the-board wage increase.
Vigilant Union, the rank-and-file bargaining agent, charged the company with Unfair Labor Practice
on the ground that (1) no consultations had been made on who would render overtime work; and (2)
the unilateral overtime pay rate reduction is a violation of Article 100 (entitled Prohibition Against
Elimination or Diminution of Benefits) of the Labor Code.
Is the union position meritorious? (8%)
IV.
Bobby, who was assigned as company branch accountant in Tarlac where his family also lives, was
dismissed by Theta Company after anomalies in the company's accounts were discovered in the
branch Bobby filed a complaint and was ordered reinstated with full backwages after the Labor
Arbiter found that he had been denied due process because no investigation actually took place.
Theta Company appealed to the National Labor Relations Commission (NLRC) and at the same
time wrote Bobby, advising him to report to the main company office in Makati where he would be
reinstated pending appeal Bobby refused to comply with his new assignment because Makati is very
far from Tarlac and he cannot bring his family to live with him due to the higher cost of living in
Makati.
(A) Is Bobby's reinstatement pending appeal legally correct? (4%)
(B) Advise Bobby on the best course of action to take under the circumstances. (4%)
V.
Cris filed a complaint for illegal dismissal against Baker Company. The Labor Arbiter dismissed the
complaint but awarded Cris financial assistance. Only the company appealed from the Labor
Arbiter's ruling. It confined its appeal solely to the question of whether financial assistance could be
awarded. The NLRC, instead of ruling solely on the appealed issue, fully reversed the Labor
Arbiter's decision; it found Baker Company liable for illegal dismissal and ordered the payment of
separation pay and full backwages.
Through a petition for certiorari under Rule 65 of the Rules of Court, Baker Company challenged the
validity of the NLRC ruling. It argued that the NLRC acted with grave abuse of discretion when it
ruled on the illegal dismissal issue, when the only issue brought on appeal was the legal propriety of
the financial assistance award.
Cris countered that under Article 218(c) of the Labor Code, the NLRC has the authority to "correct,
amend, or waive any error, defect or irregularity whether in substance or in form" in the exercise of
its appellate jurisdiction.
Decide the case. (8%)
VI.
Because of the stress in caring for her four (4) growing children, Tammy suffered a miscarriage late
in her pregnancy and had to undergo an operation. In the course of the operation, her obstetrician
further discovered a suspicious-looking mass that required the subsequent removal of her uterus
(hysterectomy). After surgery, her physician advised Tammy to be on full bed rest for six (6) weeks.
Meanwhile, the biopsy of the sample tissue taken from the mass in Tammy's uterus showed a
beginning malignancy that required an immediate series of chemotherapy once a week for four (4)
weeks.
(A) What benefits can Tammy claim under existing social legislation? (4%)
(B) What can Roger-Tammy's 2nd husband and the father of her two (2) younger children
-claim as benefits under the circumstances? (4%)
VII.
Philippine Electric Company is engaged in electric power generation and distribution. It is a
unionized company with Kilusang Makatao as the union representing its rank-and-file employees.
During the negotiations for their expired collective bargaining agreement (CBA), the parties duly
served their proposals and counter-proposals on one another. The parties, however, failed to
discuss the merits of their proposals and counter-proposals in any formal negotiation meeting
because their talks already bogged down on the negotiation ground rules, i.e., on the question of
how they would conduct their negotiations, particularly on whether to consider retirement as a
negotiable issue.
Because of the continued impasse, the union went on strike. The Secretary of Labor and
Employment immediately assumed jurisdiction over the dispute to avert widespread electric power
interruption in the country. After extensive discussions and the filing of position papers (before the
National Conciliation and Mediation Board and before the Secretary himself) on the validity of the
union's strike and on the wage and other economic issues (including the retirement issue), the
DOLE Secretary ruled on the validity of the strike and on the disputed CBA issues, and ordered the
parties to execute a CBA based on his rulings.
Did the Secretary of Labor exceed his jurisdiction when he proceeded to rule on the parties' CBA
positions even though the parties did not fully negotiate on their own? (8%)
VIII.
After thirty (30) years of service, Beta Company compulsorily retired Albert at age 65 pursuant to the
company's Retirement Plan. Albert was duly paid his full retirement benefits of one (1) month pay for
every year of service under the Plan. Thereafter, out of compassion, the company allowed Albert to
continue working and paid him his old monthly salary rate, but without the allowances that he used
to enjoy.
After five (5) years under this arrangement, the company finally severed all employment relations
with Albert; he was declared fully retired in a fitting ceremony but the company did not give him any
further retirement benefits. Albert thought this treatment unfair as he had rendered full service at his
usual hours in the past five (5) years. Thus, he filed a complaint for the allowances that were not
paid to him, and for retirement benefits for his additional five (5) working years, based either on the
company's Retirement Plan or the Retirement Pay Law, whichever is applicable.
(A) After Albert's retirement at age 65, should he be considered a regular employee entitled
to all his previous salaries and benefits when the company allowed him to continue working?
(4%)
(B) Is he entitled to additional retirement benefits for the additional service he rendered after
age 65? (4%)
IX.
Pablo works as a driver at the National Tire Company (NTC). He is a member of the Malayang
Samahan ng Manggagawa sa NTC, the exclusive rank-and-file collective bargaining representative
in the company. The union has a CBA with NTC which contains a union security and a check-off
clause. The union security clause contains a maintenance of membership provision that requires all
members of the bargaining unit to maintain their membership in good standing with the union during
the term of the CBA under pain of dismissal. The check-off clause on the other hand authorizes the
company to deduct from union members' salaries defined amounts of union dues and other fees.
Pablo refused to issue an authorization to the company for the check-off of his dues, maintaining
that he will personally remit his dues to the union.
(A) Would the NTC management commit unfair labor practice if it desists from checking off
Pablo's union dues for lack of individual authorization from Pablo? (4%)
(B) Can the union charge Pablo with disloyalty for refusing to allow the check off of his union
dues and, on this basis, ask the company to dismiss him from employment? (4%)
X.
For ten (10) separate but consecutive yearly contracts, Cesar has been deployed as an able-bodied
seaman by Meritt Shipping, through its local agent, Ace Maritime Services (agency), in accordance
with the 2000Philippine Overseas Employment Administration Standard Employment Contract (2000
POEA-SEC). Cesar's employment was also covered by a CBA between the union, AMOSl.JP, and
Meritt Shipping. Both the 2000 POEA-SEC and the CBA commonly provide the same mode and
procedures for claiming disability benefits. Cesar's last contract (for nine months) expired on July 15,
2013.
Cesar disembarked from the vessel M/V Seven Seas on July 16, 2013as a seaman on "finished
contract". He immediately reported to the agency and complained that he had been experiencing
spells of dizziness, nausea, general weakness, and difficulty in breathing. The agency referred him
to Dr. Sales, a cardio-pulmonary specialist, who examined and treated him; advised him to take a
complete rest for a while; gave him medications; and declared him fit to resume work as a seaman.
After a month, Cesar went back to the agency to ask for re-deployment. The agency rejected his
application. Cesar responded by demanding total disability benefits based on the ailments that he
developed and suffered while on board Meritt Shipping vessels. The claim was based on the
certification of his physician (internist Dr. Reyes) that he could no longer undertake sea duties
because of the hypertension and diabetes that afflicted him while serving on Meritt Shipping vessels
in the last 10 years. Rejected once again, Cesar filed a complaint for illegal dismissal and the
payment of total permanent disability benefits against the agency and its principal.
Assume that you are the Labor Arbiter deciding the case. Identify the facts and issues you would
consider material in resolving the illegal dismissal and disability complaint. Explain your choices and
their materiality, and resolve the case. (8%)
I. The parties to a labor dispute can validly submit to voluntary arbitration _________. (1%)
(A) any disputed issue they may agree to voluntarily arbitrate
(B) only matters that do not fall within the exclusive jurisdiction of the Labor Arbiter
(C) any disputed issue but only after conciliation at the National Conciliation and Mediation
Board fails
(D) any disputed issue provided that the Labor Arbiter has not assumed jurisdiction over the
case on compulsory arbitration

(E) only matters relating to the interpretation or implementation of a collective bargaining
agreement
II. When there is no recognized collective bargaining agent, can a legitimate labor organization
validly declare a strike against the employer? (1%)
(A) Yes, because the right to strike is guaranteed by the Constitution and cannot be denied
to any group of employees.
(B) No, because only an exclusive bargaining agent may declare a strike against the
employer.
(C) Yes, because the right to strike is a basic human right that the country's international
agreements and the International Labor Organization recognize.
(D) Yes, but only in case of unfair labor practice.
(E) No, in the absence of a recognized bargaining agent, the workers' recourse is to file a
case before the Department of Labor and Employment.
III.
Mr. Del Carmen, unsure if his foray into business (messengerial service catering purely to law firms)
would succeed but intending to go long-term if he hurdles the first year, opted to open his operations
with one-year contracts with two law firms although he also accepts messengerial service requests
from other firms as their orders come. He started with one permanent secretary and six (6)
messengers on a one-year, fixed-term, contract.
Is the arrangement legal from the perspective of labor standards? (1%)
(A) No, because the arrangement will circumvent worker's right to security of tenure.
(B) No. If allowed, the arrangement will serve as starting point in weakening the security of
tenure guarantee.
(C) Yes, if the messengers are hired through a contractor.
(D) Yes, because the business is temporary and the contracted undertaking is specific and
time-bound.
(E) No, because the fixed term provided is invalid.
IV. Chito was illegally dismissed by DEF Corp. effective at the close of business hours of December
29, 2009.
IV(1). He can file a complaint for illegal dismissal without any legal bar within _________.
(1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
IV(2). If he has money claims against DEF Corp., he can make the claim without any legal
bar within _________. (1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
V. After vainly struggling to stay financially afloat for a year, LMN Corp. finally gave up and closed
down its operations after its major creditors filed a petition for LMN's insolvency and liquidation.
In this situation, LMN's employees are entitled to _________ as separation pay. (1%)
(A) one-half month pay for every year of service
(B) one month pay for every year of service
(C) one-half month pay
(D) one month pay
(E) no separation pay at all
VI. At age 65 and after 20 years of sewing work at home on a piece rate basis for PQR Garments, a
manufacturer-exporter to Hongkong, Aling Nena decided it was time to retire and to just take it easy.
Is she entitled to retirement pay from PQR? (1%)
(A) Yes, but only to one month pay.
(B) No, because she was not a regular employee.

(C) Yes, at the same rate as regular employees.
(D) No, because retirement pay is deemed included in her contracted per piece pay.
(E) No, because homeworkers are not entitled to retirement pay.
VII. The minimum wage prescribed by law for persons with disability is __________. (1%)
(A) 50% of the applicable minimum wage
(B) 75% of the applicable minimum wage
(C) 100% of the applicable minimum wage
(D) the wage that the parties agree upon, depending on the capability of the disabled.
(E) the wage that the parties agree upon, depending on the capability of the disabled, but
not less than 50% of the applicable minimum wage
VIII. What is the financial incentive, if any, granted by law to SPQ Garments whose cutters and
sewers in its garments-for-export operations are80% staffed by deaf and deaf-mute workers? (1%)
(A) Additional deduction from its gross income equivalent to 25% of amount paid as salaries
to persons with disability.
(B) Additional deduction from its gross income equivalent to 50% of the direct costs of the
construction of facilities for the use of persons with disability.
(C) Additional deduction from its net taxable income equivalent to 5% of its total payroll
(D) Exemption from real property tax for one (1) year of the property where facilities for
persons with disability have been constructed.
(E) The annual deduction under (A), plus a one-time deduction under (B).
IX. Mr. Ortanez has been in the building construction business for several years. He asks you, as his
new labor counsel, for the rules he must observe in considering regular employment in the
construction industry.
You clarify that an employee, project or non-project, will acquire regular status if __________. (1%)
(A) he has been continuously employed for more than one year
(B) his contract of employment has been repeatedly renewed, from project to project, for
several years
(C) he performs work necessary and desirable to the business, without a fixed period and
without reference to any specific project or undertaking

(D) he has lived up to the company's regularization standards
X. Samahang Tunay, a union of rank-and-file employees lost in a certification election at Solam
Company and has become a minority union. The majority union now has a signed CBA with the
company and the agreement contains a maintenance of membership clause.
What can Samahang Tunay still do within the company as a union considering that it still has
members who continue to profess continued loyalty to it? (1%)
(A) It can still represent these members in grievance committee meetings.
(B) It can collect agency fees from its members within the bargaining unit.
(C) It can still demand meetings with the company on company time.
(D) As a legitimate labor organization, it can continue to represent its members on non-CBArelated matters.
(F) All of the above.
XI. The members of the administrative staff of Zeta, a construction company, enjoy ten (10) days of
vacation leave with pay and ten (10) days of sick leave with pay, annually. The workers' union,
Bukluran, demands that Zeta grant its workers service incentive leave of five (5) days in compliance
with the Labor Code.
Is the union demand meritorious? (1%)
(A) Yes, because non-compliance with the law will result in the diminution of employee
benefits.
(B) Yes, because service incentive leave is a benefit expresslyprovided under and required
by the Labor Code.
(C) No, because Zeta already complies with the law.
(D) No, because service incentive leave is a Labor Code benefit that does not apply in the
construction industry.
(E) Yes, because Labor Code benefits are separate from those voluntarily granted by the
company.
XII. Upon the expiration of the first three (3) years of their CBA, the union and the company
commenced negotiations. The union demanded that the company continue to honor their 30-day
union leave benefit under the CBA. The company refused on the ground that the CBA had already
expired, and the union had already consumed their union leave under the CBA.
Who is correct? (1%)
(A) The company is correct because the CBA has expired; hence it is no longer bound to
provide union leave.
(B) The company is correct because the union has already consumed the allotted union
leave under the expired CBA.
(C) The union is correct because it is still the bargaining representative for the next two (2)
years.
(D) The union is correct because union leaves are part of the economic terms that continue
to govern until new terms are agreed upon.
(E) They are both wrong.
XIII. Hector, a topnotch Human Resource Specialist who had worked in multinational firms both in
the Philippines and overseas, was recruited by ABC Corp., because of his impressive credentials. In
the course of Hector's employment, the company management frequently did not follow his
recommendations and he felt offended by this constant rebuff.
Thus, he toyed with the idea of resigning and of asking for the same separation pay that ABC earlier
granted to two (2) department heads when they left the company.
To obtain a legal opinion regarding his options, Hector sent an email to ABC's retained counsel,
requesting for advice on whether the grant by the company of separation pay to his resigned
colleagues has already ripened into a company practice, and whether he can similarly avail of this
benefit if he resigns from his job.
As the company's retained legal counsel, how will you respond to Hector? (1%)
(A) I would advise him to write management directly and inquire about the benefits he can
expect if he resigns.
(B) I would advise him that the previous grant of separation pay to his colleagues cannot be
considered a company practice because several other employees had resigned and were
not given separation pay.
(C) I would advise him to ask for separation pay, not on account of company practice, but on
the basis of discrimination as he is similarly situated as the two resigned department heads
who were paid their separation pay.
(D) I would not give him any legal advice because he is not my client.
(E) I would maintain that his question involves a policy matter beyond the competence of a
legal counsel to give.

XIV. Aleta Quiros was a faculty member at BM Institute, a private educational institution. She was
hired on a year-to-year basis under the probationary employment period provision of the Manual of
Regulations for Private Schools. The terms and conditions of her engagement were defined under
her renewable yearly contract.
For reasons of its own, BM Institute no longer wanted to continue with Aleta's teaching services.
Thus, after the contract for her second year expired, BM Institute advised Aleta that her contract
would no longer be renewed. This advice prompted Aleta to file a complaint for illegal dismissal
against BM Institute.
Will the complaint prosper? (1%)
(A) Yes, because no just or authorized cause existed for the termination of her probationary
employment.
(B) Yes, because under the Labor Code, Aleta became a regular employee after 6 months
and she may now only be dismissed for cause.
(C) No, because there was no dismissal to speak of. Her employment was automatically
terminated upon the expiration of her year-to-year fixed term employment.
(D) No, because BM Institute may dismiss its faculty members at will in the exercise of its
academic freedom.
(E) No, because Aleta was still on probationary employment.
XV. Robert, an employee of ABC Company, is married to Wanda. One day, Wanda visited the
company office with her three (3) emaciated minor children, and narrated to the Manager that
Robert had been squandering his earnings on his mistress, leaving only a paltry sum for the support
of their children. Wanda tearfully pleaded with the Manager to let her have one half of Robert's pay
every payday to ensure that her children would at least have food on the table. To support her plea,
Wanda presented a Kasulatan signed by Robert giving her one half of his salary, on the condition
that she would not complain if he stayed with his mistress on weekends.
If you were the Manager, would you release one half of Robert's salary to Wanda? (1%)
(A) No, because an employer is prohibited from interfering with the freedom of its employees
to dispose of heir wages.
(B) Yes, because of Robert's signed authorization to give Wanda one half of his salary.
(C) No, because there is no written authorization for ABC Company to release Robert's
salary to Wanda.
(D) Yes, because it is Robert's duty to financially support his minor children.
(E) No, because Robert's Kasulatan is based on an illegal consideration and is of doubtful
legal validity.
XVI. Ricardo operated a successful Makati seafood restaurant patronized by a large clientele base
for its superb cuisine and impeccable service. Ricardo charged its clients a 10% service charge and
distributed 85% of the collection equally among its rank-and-file employees, 10% among managerial
employees, and 5% as reserve for losses and break ages. Because of the huge volume of sales, the
employees received sizeable shares in the collected service charges.
As part of his business development efforts, Ricardo opened a branch in Cebu where he maintained
the same practice in the collection and distribution of service charges. The Cebu branch, however,
did not attract the forecasted clientele; hence, the Cebu employees received lesser service charge
benefits than those enjoyed by the Makati-based employees. As a result, the Cebu branch
employees demanded equalization of benefits and filed a case with the NLRC for discrimination
when Ricardo refused their demand.
XVI(l) Will the case prosper? (1%)
(A) Yes, because the employees are not receiving equal treatment in the distribution of
service charge benefits.
(B) Yes, because the law provides that the 85% employees' share in the service charge
collection should be equally divided among all the employees, in this case, among the Cebu
and Makati employees alike.
(C) No, because the employees in Makati are not similarly situated as the Cebu employees
with respect to cost of living and conditions of work.
(D) No, because the service charge benefit attaches to the outlet where service charges are
earned and should be distributed exclusively among the employees providing service in the
outlet.
(E) No, because the market and the clientele the two branches are serving, are different.
XVI(2). In order to improve the Cebu service and sales, Ricardo decided to assign some of its
Makati-based employees to Cebu to train Cebu employees and expose them to the Makati standard
of service. A chef and three waiters were assigned to Cebu for the task. While in Cebu, the assigned
personnel shared in the Cebu service charge collection and thus received service charge benefits
lesser than what they were receiving in Makati.
If you were the lawyer for the assigned personnel, what would you advice them to do? (1%)
(A) I would advise them to file a complaint for unlawful diminution of service charge benefits
and for payment of differentials.
(B) I would advise them to file a complaint for illegal transfer because work in Cebu is highly
prejudicial to them in terms of convenience and service charge benefits.
(C) I would advise them to file a complaint for discrimination in the grant of service charge
benefits.
(D) I would advise them to accept their Cebu training assignment as an exercise of the
company's management prerogative.
(E) I would advise them to demand the continuation of their Makati-based benefits and to file
a complaint under (B)above if the demand is not heeded.
XVII. Constant Builders, an independent contractor, was charged with illegal dismissal and nonpayment of wages and benefits of ten dismissed employees. The complainants impleaded as corespondent Able Company, Constant Builder's principal in the construction of Able's office building.
The complaint demanded that Constant and Able be held solidarily liable for the payment of their
backwages, separation pay, and all their unpaid wages and benefits.
If the Labor Arbiter rules in favor of the complainants, choose the statement that best describes the
extent of the liabilities of Constant and Able. (1%)
(A) Constant and Able should be held solidarily liable for the unpaid wages and benefits, as
well as backwages and separation pay, based on Article 109 of the Labor Code which
provides that "every employer or indirect employer shall be held responsible with his
contractor or subcontractor for any violation of any provision of this Code."
(B) Constant and Able should be held solidarily liable for the unpaid wages and benefits, and
should order Constant, as the workers' direct employer, to be solely liable for the backwages
and separation pay.
(C) Constant and Able should be held solidarily liable for the unpaid wages and benefits and
the backwages since these pertain to labor standard benefits for which the employer and
contractor are liable under the law, while Constant alone as the actual employer - should
be ordered to pay the separation pay.
(D) Constant and Able should be held solidarily liable for the unpaid wages and benefits, and
Constant should be held liable for their backwages and separation pay unless Able is shown
to have participated with malice or bad faith in the workers' dismissal, in which case both
should be held solidarily liable.
(E) The above statements are all inaccurate.
XVIII. The Pinagbuklod union filed a Petition for Certification Election, alleging that it was a
legitimate labor organization of the rank-and-file employees of Delta Company. On Delta's motion,
the Med Arbiter dismissed the Petition, based on the finding that Pinagbuklod was not a legitimate
labor union and had no legal personality to file a Petition for Certification Election because its
membership was a mixture of rank-and-file and supervisory employees.
Is the dismissal of the Petition for Certification Election by the Med-Arbiter proper? (1%)
(A) Yes, because Article 245 of the Labor Code prohibits supervisory employees from joining
the union of he rank and file employees and provides that a union representing both rank
and file and supervisory employees as members is not a legitimate labor organization.
(B) No, because the grounds for the dismissal of a petition for certification election do not
include mixed membership in one umon.

(C) No, because a final order of cancellation of union registration is required before a petition
for certification election may be dismissed on the ground of lack of legal personality of the
umon.
(D) No, because Delta Company did not have the legal personality to participate in the
certification election proceedings and to file a motion to dismiss based on the legitimacy
status of the petitioning union.
POLITICAL AND INTERNATIONAL LAW
October 6, 2013
8:00A.M.- 12:00 P.M.

INSTRUCTIONS
There are TWELVE (12) Essay Questions numbered I to XII (with subquestions), and TWENTY (20)
Multiple Choice Questions (MCQs) numbered I to XX, to be answered within four (4) hours.
portion contains questions worth20%.
given premises.
offered.
J. ARTURO D. BRION
Chairman
ESSAY QUESTIONS
I.
In the last quarter of 2012, about 5,000 container vans of imported goods intended for the Christmas
Season were seized by agents of the Bureau of Customs. The imported goods were released only
on January 10,2013. A group of importers got together and filed an action for damages before the
Regional Trial Court of Manila against the Department of Finance and the Bureau of Customs.
The Bureau of Customs raised the defense of immunity from suit and, alternatively, that liability
should lie with XYZ Corp. which the Bureau had contracted for the lease of ten (10) high powered
van cranes but delivered only five (5) of these cranes, thus causing the delay in its cargo-handling
operations. It appears that the Bureau, despite demand, did not pay XYZ Corp. the Php 1.0 Million
deposit and advance rental required under their contract.
(A) Will the action by the group of importers prosper? (5%)
(B) Can XYZ Corp. sue the Bureau of Customs to collect rentals for the delivered cranes?
(5'%)
II.
While Congress was in session, the President appointed eight acting Secretaries. A group of
Senators from the minority bloc questioned the validity of the appointments in a petition before the
Supreme Court on the ground that while Congress is in session, no appointment that requires
confirmation by the Commission on Appointments, can be made without the latter's consent, and
that an undersecretary should instead be designated as Acting Secretary.
Should the petition be granted? (5%)
III.
A robbery with homicide had taken place and Lito, Badong and Rolliewere invited for questioning
based on the information furnished by a neighbor that he saw them come out of the victim's house
at about the time of the robbery/killing. The police confronted the three with this and other
information they had gathered, and pointedly accused them of committing the crime.
Lito initially resisted, but eventually broke down and admitted his participation in the crime. Elated by
this break and desirous of securing a written confession soonest, the police called City Attorney
Juan Buan to serve as the trio's counsel and to advise them about their rights during the
investigation.
Badong and Rollie, weakened in spirit by Lito's early admission, likewise admitted their participation.
The trio thus signed a joint extra-judicial confession which served as the main evidence against
them at their trial. They were convicted based on their confession.
Should the judgment of conviction be affirmed or reversed on appeal? (5%)
IV.
Congress enacted a law providing for trial by jury for those charged with crimes or offenses
punishable by reclusion perpetua or life imprisonment. The law provides for the qualifications of
members of the jury, the guidelines for the bar and bench for their selection, the manner a trial by
jury shall operate, and the procedures to be followed.
V.
As a leading member of the Lapiang Mandirigma in the House of Representatives, you were tasked
by the party to initiate the moves to impeach the President because he entered into an executive
agreement with the US Ambassador for the use of the former Subic Naval Base by the US Navy, for
free, i.e., without need to pay rent nor any kind of fees as a show of goodwill to the U.S. because of
the continuing harmonious RP-US relations.
Cite at least two (2) grounds for impeachment and explain why you chose them. (6%)
VI.
Congress passed Republic Act No. 7711 to comply with the United Nations Convention on the Law
of the Sea.
In a petition filed with the Supreme Court, Anak Ti Ilocos, an association of Ilocano professionals,
argued that Republic Act No. 7711discarded the definition of the Philippine territory under the Treaty
of Paris and in related treaties; excluded the Kalayaan Islands and the Scarborough Shoals from the
Philippine Archipelagic baselines; and converted internal waters into archipelagic waters.
Is the petition meritorious? (6%)
VII.
As he was entering a bar, Arnold -who was holding an unlit cigarette in his right hand -was handed a
match box by someone standing near the doorway. Arnold unthinkingly opened the matchbox to light
his cigarette and as he did so, a sprinkle of dried leaves fell out, which the guard noticed. The guard
immediately frisked Arnold, grabbed the matchbox, and sniffed its contents. After confirming that the
matchbox contained marijuana, he immediately arrested Arnold and called in the police.
At the police station, the guard narrated to the police that he personally caught Arnold in possession
of dried marijuana leaves. Arnold did not contest the guard's statement; he steadfastly remained
silent and refused to give any written statement. Later in court, the guard testified and narrated the
statements he gave the police over Arnold's counsel's objections. While Arnold presented his own
witnesses to prove that his possession and apprehension had been set-up, he himself did not testify.
The court convicted Arnold, relying largely on his admission of the charge by silence at the police
investigation and during trial.
From the constitutional law perspective, was the court correct in its ruling? (6%)
VIII.
Bobby, an incoming third year college student, was denied admission by his university, a premiere
educational institution in Manila, after he failed in three (3) major subjects in his sophomore year.
The denial of admission was based on the university's rules and admission policies.
Unable to cope with the depression that his non-admission triggered, Bobby committed suicide. His
family sued the school for damages, citing the school's grossly unreasonable rules that resulted in
the denial of admission. They argued that these rules violated Bobby's human rights and the priority
consideration that the Constitution gives to the education of the youth.
You are counsel for the university. Explain your arguments in support of the university's case. (6%)
IX.
Conrad is widely known in the neighborhood as a drug addict. He is also suspected of being a
member of the notorious "Akyat-Condo Gang" that has previously broken into and looted
condominium units in the area.
Retired Army Colonel Sangre who is known as an anti-terrorism fighter who disdained human and
constitutional rights and has been nicknamed "terror of Mindanao" is now the Head of Security of
Capricorn Land Corporation, the owner and developer of Sagittarius Estates where a series of
robberies has recently taken place.
On March l, 2013, Conrad informed his mother, Vannie, that uniformed security guards had invited
him for a talk in their office but he refused to come. Later that day, however, Conrad appeared to
have relented; he was seen walking into the security office flanked by two security guards. Nobody
saw him leave the office afterwards.
Conrad did not go home that night and was never seen again. The following week and after a weeklong search, Vannie feared the worst because of Col. Sangre's reputation. She thus reported
Conrad's disappearance to the police. When nothing concrete resulted from the police investigation,
Vannie at the advice of counsel - f1led a petition for a writ of amparo to compel Col. Sangre and
the Sagittarius Security Office to produce Conrad and to hold them liable and responsible for
Conrad's disappearance.
(A) Did Vannie's counsel give the correct legal advice? (6%)
(B) If the petition would prosper, can Col. Sangre be held liable and/or responsible for
Conrad's disappearance? (6%)
X.
The Ambassador of the Republic of Kafiristan referred to you for handling, the case of the
Embassy's Maintenance Agreement with CBM, a private domestic company engaged in
maintenance work. The Agreement binds CBM, for a defined fee, to maintain the Embassy's
elevators, air-conditioning units and electrical facilities. Section 10 of the Agreement provides that
the Agreement shall be governed by Philippine laws and that any legal action shall be brought
before the proper court of Makati. Kafiristan terminated the Agreement because CBM allegedly did
not comply with their agreed maintenance standards.
CBM contested the tennination and filed a complaint againstKafiristan before the Regional Trial
Court of Makati. The Ambassador wants you to file a motion to dismiss on the ground of state
immunity from suit and to oppose the position that under Section 10 of the Agreement, Kafiristan
expressly waives its immunity from suit.
Under these facts, can the Embassy successfully invoke immunity from suit? (6%)
XI.
In her interview before the Judicial and Bar Council (JBC),Commissioner Annie Amorsolo of the
National Labor Relations Commission claims that she should be given credit for judicial service
because as NLRC Commissioner, she has the rank of a Justice of the Court of Appeals; she
adjudicates cases that are appealable to the Court of Appeals; she is assigned car plate No. 10; and
she is, by law, entitled to the rank, benefits and privileges of a Court of Appeals Justice.
If you are a member of the JBC, would you give credit to this explanation? (6%)
XII.
In the May 2013 elections, the Allied Workers' Group of the Philippines (AWGP), representing land-
based and sea-based workers in the Philippines and overseas, won in the party list congressional
elections. Atty. Abling, a labor lawyer, is its nominee.
As part of the party's advocacy and services, Congressman Abling engages in labor counseling,
particularly for local workers with claims against their employers and for those who need
representation in collective bargaining negotiations with employers. When labor cases arise, AWGP
enters its appearance in representation of the workers and the Congressman makes it a point to be
there to accompany the workers, although a retained counsel also formally enters his appearance
and is invariably there. Congressman Abling largely takes a passive role in the proceedings
although he occasionally speaks to supplement the retained counsel's statements. It is otherwise in
CBA negotiations where he actively participates.
Management lawyers, feeling that a congressman should not actively participate in cases before
labor tribunals and before employers because of the influence a congressman can wield, filed a
disbarment case against the Congressman before the Supreme Court for his violation of the Code of
Professional Responsibility and for breach of trust, in relation particularly with the prohibitions on
legislators under the Constitution.
Is the cited ground for disbarment meritorious? (6%)
I. The equal protection clause is violated by __________. (1%)
(A) a law prohibiting motorcycles from plying on limited access highways.
(B) a law granting Value Added Tax exemption to electric cooperatives that sells electricity to
the "homeless poor."
(C) a law providing that a policeman shall be preventively suspended until the termination of
a criminal case against him.
(D) a law providing higher salaries to teachers in public schools who are "foreign hires."
(E) a law that grants rights to local Filipino workers but denies the same rights to overseas
Filipino workers.
II. Offended by the President's remarks that the Bureau of Customs is a pit of misfits and the corrupt,
the Bureau of Customs Employees Association composed of 3,000 workers seeks your legal advice
on how best to protest what it views to be the President's baseless remarks.
A prudent legal advice is that __________. (1%)
(A) employees can go on mass leave of absence for one week
(B) employees can march and rally at Mendiola every Monday
(C) employees can barricade the gates of the Port of Manila at South Harbor and call for the
resignation of the incumbent Commissioner of Customs

(D) employees can wear black arm bands and pins with the word "UNFAIR" inscribed
(E) None of the above can legally be done.
III. Congress enacted Republic Act No. 1234 requiring all candidates for public offices to post an
election bond equivalent to the one (1) year salary for the position for which they are candidates.
The bond shall be forfeited if the candidates fail to obtain at least 10% of the votes cast.
Is Republic Act No. 1234 valid? (1%)
(A) It is valid as the bond is a means of ensuring fair, honest, peaceful and orderly elections.
(B) It is valid as the bond requirement ensures that only candidates with sufficient means
and who cannot be corrupted, can runfor public office.
(C) It is invalid as the requirement effectively imposes a property qualification to run for
public office.
(D) It is invalid as the amount of the surety bond is excessive and unconscionable.
(E) It is valid because it is a reasonable requirement; the Constitution itself expressly
supports the accountability of public officers.
IV. What is the legal effect of decisions of the International Court of Justice in cases submitted to it
for resolution? (1%)
(A) The decision is binding on other countries in similar situations.
(B) The decision is not binding on any country, even the countries that are parties to the
case.
(C) The decision is binding only on the parties but only with respect to that particular case.
(D) The decision is not binding on the parties and is only advisory.
(E) The binding effect on the parties depends on their submission agreement.
V. Under the UN Convention on the Law of the Sea, the exclusive economic zone refers to an area.
(1%)
(A) that is at least 100 miles from the baselines from which the outer limit of the territorial
sea is measured
(B) that is at least 200 miles but not to exceed 300 miles from the baselines from which the
outer limit of the territorial sea is measured
(C) beyond and adjacent to a country's territorial sea which cannot go beyond 200 nautical
miles from the baselines from which the outer limit of the territorial sea is measured
(D) that can go beyond 3 nautical miles but cannot extend 300 nautical miles from the
baselines from which the outer limit of the territorial sea is measured
VI. A child born under either the 1973 or the 1987 Constitution, whose father or mother is a Filipino
citizen at the time of his birth, is __________. (1%)
(A) not a Filipino citizen as his father and mother must both be Filipino citizens at the time of
his birth
(B) not a Filipino citizen if his mother is a Filipino citizen but his father is not, at the time of
his birth
(C) a Filipino citizen no matter where he or she may be born
(D) a Filipino citizen provided the child is born in the Philippines
(E) a Filipino citizen if he or she so elects upon reaching the age of 21
VII. Who has control of the expenditure of public funds? (1%)
(A) The Office of the President through the Department of Budget and Management.
(B) The House of Representatives from where all appropriation bills emanate.
(C) The Senate through its Committee on Finance.
(D) The Congress of the Republic of the Philippines.
(E) Both the members of Congress and the President acting jointly, if so provided by the
General Appropriations Act.
VIII. May the power of cities to raise revenues be limited by an executive order of the President?
(1%)
(A) Yes, because local government units are under the administrative control of the
President through the Department of Interior and Local Government.
(B) No, because local government units now enjoy full local fiscal autonomy.
(C) No, because only limitations established by Congress can define and limit the powers of
local governments.
(D) Yes, because the President has the power and authority to impose reasonable
restrictions on the power of cities to raise revenues.
(E) Yes, if so provided in a city's charter.

IX. The provision under the Constitution -that any member who took no part, dissented, or inhibited
from a decision or resolution must state the reason for his dissent or non-participation - applies
__________. (1%)
(A) only to the Supreme Court
(B) to both the Supreme Court and the Court of Appeals
(C) to the Supreme Court, Court of Appeals and the Sandiganbayan
(D) to the Supreme Court, the Court of Appeals, the Sandiganbayan and the Court of Tax
Appeals
(E) to all collegial judicial and quasi-judicial adjudicatory bodies
X. Choose the least accurate statement about the independence guaranteed by the 1987
Constitution to the following constitutional bodies: (1%)
(A) The Constitution guarantees the COMELEC decisional and institutional independence
similar to that granted to theJudiciary.
(B) All bodies labeled as "independent" by the Constitution enjoyfiscal autonomy as an
attribute of their independence.
(C) Not all bodies labeled as "independent" by the Constitution were intended to be
independent from the Executive branch of government.
(D) The Constitution guarantees various degrees of independence from the other branches
of government when it labels bodies as "independent".
(E) The COMELEC, the COA, and the CSC enjoy the same degree of independence.
XI. At the Senate impeachment trial of Justice Pablo P. San Quintin, Hon. Emilio A. Tan,
Congressman and Impeachment Panel Manager, wrote the Supreme Court requesting that the
prosecutors be allowed to examine thecourt records of Stewards Association of the Philippines, Inc.
(SAP!) v. Filipinas Air, et al., G.R. No. 987654, a case that is still pending. The High Court
__________. (1%)
(A) may grant the request by reason of inter-departmental courtesy
(B) may grant the request as the records of the Filipinas Air case are public records
(C) should deny the request since records of cases that are pending for decision are
privileged except only for pleadings, orders and resolutions that are available to the public
(D) should deny the request because it violates the Court's independence and the doctrine
of separation of powers
(E) should grant the request because of the sui generis nature of the power of impeachment,
provided that the Bill of Rights is not violated
XII. Mr. Sinco sued the government for damages. After trial, the court ruled in his favor and awarded
damages amounting to P50 million against the government. To satisfy the judgment against the
government, which valid option is available to Mr. Sinco? ( 1%)
(A) Garnish the government funds deposited at the Land Bank.
(B) File a claim with the Commission on Audit (COA) pursuant to Commonwealth Act 327, as
amended by Presidential Decree1445.
(C) Make representations with the Congress to appropriate the amount to satisfy the
judgment.
(D) File a petition for mandamus in court to compel Congress to appropriate P50 million to
satisfy the judgment.
(E) Proceed to execute the judgment as provided by the Rules of Court because the State
allowed itself to be sued.
XIII. Which of the following provisions of the Constitution does not confer rights that can be enforced
in the courts but only provides guidelines for legislative or executive action? (l%)
(A) The maintenance of peace and order, the protection of life, liberty, and property, and
promotion of the general welfare are essential for the enjoyment by all the people of the
blessings of democracy.
(B) The State shall give priority to education, science and technology, arts, culture, and
sports to foster patriotism and nationalism, accelerate social progress, and promote total
human liberation and development.
(C) The natural and primary right and duty of parents in the rearing of the youth for civic
efficiency and the development of moral character shall receive the support of the
Government.
(D) The right of the people to information on matters. of public concern shall be recognized.
Access to official records, and to documents and papers pertaining to official acts,
transactions, or decisions, as well as to government research data used as basis for policy
development, shall be afforded the citizen, subject to such limitations as may be provided by
law.
(E) All the above only provide guidelines and are not self-executing.
XIV. The President entered into an executive agreement with Vietnam for the supply to the
Philippines of animal feeds not to exceed 40,000 tons in any one year. The Association of Animal
Feed Sellers of the Philippines questioned the executive agreement for being contrary to R.A. 462
which prohibits the importation of animal feeds from Asian countries. Is the challenge correct? (1%)
(A) Yes, the executive agreement is contrary to an existing domestic law.
(B) No, the President is solely in charge of foreign relations and all his actions in this role
form part of the law of the land.
(C) No, international agreements are sui generis and stand independently of our domestic
laws.
(D) Yes, the executive agreement is actually a treaty which does not take effect without
ratification by the Senate.
(E) Yes, the challenge is correct because there is no law empowering the President to
undertake the importation.
XV. The separation of Church and State is most clearly violated when __________. (1%)
(A) the State funds a road project whose effect is to make a church more accessible to its
adherents
(B) the State declares the birthplace of a founder of a religious sect as a national historical
site
(C) the State expropriates church property in order to construct an expressway that, among
others, provides easy access to the Church's main cathedral
(D) the State gives vehicles to bishops to assist them in church-related charitable projects
(E) the State allows prayers in schools for minor children without securing the prior consent
of their parents
XVI. Patricio was elected member of the House of Representative in the May 2010 Elections. His
opponent Jose questioned Patricio's victory before the House of Representatives Electoral Tribunal
and later with the Supreme Court.
In a decision promulgated in November 2011, the Court ruled in Jose's favor; thus, Patricio was
ousted from his seat in Congress. Within a year from that decision, the President can appoint
Patricio __________. (1%)
(A) only as a member of the board of directors of any government owned and controlled
corporation
(B) only as a deputy Ombudsman
(C) only as a Commissioner of the Civil Service Commission
(D) only as Chairman of the Commission on Elections
(E) to any position as no prohibition applies to Patricio

XVII. Senator GSC proposed a bill increasing excise taxes on tobacco and alcohol products. The
generated incremental revenues shall be used for the universal health care program for all Filipinos
and for tobacco farmers' livelihood. After the Senate passed the bill on third reading, it was
transmitted to the House of Representatives which approved the bill in toto. The President
eventually signed it into law. Atty. JFC filed a petition before the Supreme Court, questioning the
constitutionality of the new law.
(A) The law is constitutional because it is for a public purpose and has duly satisfied the
three-readings-on-separate-days rule in both Houses.
(B) The law is unconstitutional because it violates the equal protection clause of the
Constitution; it is limited only to alcohol and liquor products.
(C) It is constitutional because of the Enrolled Bill Theory.
(D) It is constitutional because it is valid in form and substance and complied with the
required lawmaking procedures.(E) None of the above is correct.
XVIII. Which of the following statements is correct? (1%)
(A) The President, with the concurrence of the Monetary Board, can guarantee a foreign
loan on behalf of the Republic of the Philippines.
(B) Congress may, by law, provide limitations on the President's power to contract or
guarantee foreign loans on behalf of the Republic of the Philippines.
(C) In order to be valid and effective, treaties and executive agreements must be concurred
in by at least two-thirds of all the Members of the Senate.
(D) The President shall, at the end of every quarter of the calendar year, submit to Congress
a complete report of the loans contracted or guaranteed by the Government or governmentowned and controlled corporations.
(E) All the above choices are defective in some respects.
XIX. Candida has been administratively charged of immorality for openly living with Manuel, a
married man. Candida argues that her conjugal arrangement with Manuel fully conforms with their
religious beliefs and with the teachings of their church.
In resolving whether Candida should be administratively penalized, which is the best test to apply?
(1%)
(A) Clear and Present Danger Test
(B) Compelling State Interest Test

(C) Balancing of interests Test
(D) Conscientious Objector Test
(E) Dangerous Tendency Test
XX. Rafael questioned the qualifications of Carlos as congressman of the Third District of Manila on
the ground that Carlos is a citizen of the USA. The decision disqualifying Carlos for being a US
citizen came only in March 2010, i.e., after the adjournment of the session of Congress on the 3'd
year of the position's three-year term.
What was Carlos' status during his incumbency as congressman? (1%)
(A) He was a de jure officer, having been duly elected and proclaimed.
(B) He was not a public officer because he effectively was not entitled to be a congressman.
(C) He was a de jure officer since he completed the service of his term before he was
disqualified.
(D) He was a de facto officer since he had served and was only disqualified later.
(E) He neither possesses de jure nor de facto status as such determination is pointless.

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against the president and the corporation.

Integrated Bar members.

through the materials and CDs he secured